Most Asian currencies fell on Thursday after the minutes of the Federal Reserve’s July meeting presented a hawkish outlook on interest rates, while the Chinese yuan rose amid reports of currency market intervention by the state. The dollar strengthened against a basket of currencies after the Fed minutes, coming within sight of an over two-month high as traders bet that U.S. interest rates will remain higher for longer, or even potentially rise further this year. This notion pressured most Asian currencies, as the gap between risky and low-risk yields narrowed. The Japanese yen was among the worst hit, hovering at…
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The U.S. dollar edged lower in early European trade Thursday but remains trading near two-month highs after the minutes from the last Federal Reserve meeting offered a hawkish slant. At 03:00 ET (07:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 103.292, not far removed from the 2-month high of 103.59 seen overnight. Dollar in demand after Fed minutesThe dollar saw more demand overnight after the minutes from the July Federal Reserve policy meeting showed that a number of officials still saw the potential need for more interest rate…
The Russian rouble strengthened to 93 against the dollar on Thursday, in a volatile week filled with speculation over how the authorities might stabilise the currency after a 350-basis-point rate hike appeared to have only a limited effect. The Bank of Russia increased its key rate to 12% on Tuesday, an emergency attempt to halt the rouble’s recent slide past the symbolic 100 threshold, but analysts said more measures may be needed to return the rouble to the 80-90 range authorities have deemed acceptable. By 1005 GMT, the rouble was 1.8% stronger against the dollar at 92.92, earlier clipping a…
Most Asian currencies fell on Wednesday as strong U.S. economic readings raised concerns over the Federal Reserve having enough room to keep raising interest rates, while weak economic trends in China also dented sentiment. Data on Tuesday showed that U.S. retail sales grew more than expected in July, presenting more upside risks to consumer inflation and potentially giving the Fed more headroom to keep raising interest rates. This boosted the dollar and kept appetite for riskier Asian currencies limited. The dollar index and dollar index futures both steadied near five-week highs in Asian trade on Wednesday. Focus was also on…
As the yen slid past 145 per dollar with barely a murmur from Japanese policymakers during recent days, suspicion grew that they won’t be as quick to order intervention as they were last year as they now reap some benefits from a weaker currency. Surging exports helped economic growth hit 6% on an annualised basis in the second quarter, and lower global oil prices have helped keep a lid on the import bill. But a key factor behind the yen’s weakness is unchanged, namely the yawning yield gap with the United States. The Bank of Japan is taking baby steps…
Sterling rose against the dollar on Tuesday after data showed British wages grew at a record pace in the second quarter, adding to the Bank of England’s inflation worries, though gains were capped by some signs of a cooling labour market. Wages excluding bonuses were 7.8% higher than a year earlier in the three months to June, representing the highest annual growth rate since comparable records began in 2001, the Office for National Statistics said. But the data also showed some fresh signs of cooling in the job market with the unemployment rate unexpectedly rising to 4.2% from 4%, the…
The dollar index was flat after data showed U.S. retail sales increased more than expected in July, while the yuan sank to a nine-month trough on Tuesday after China’s central bank unexpectedly cut key policy rates. U.S. retail sales jumped 0.7% last month, the Commerce Department said, demonstrating that demand has remained resilient despite the Federal Reserve’s aggressive interest rate hikes to tame inflation, thanks to strong wage gains from a tight labor market. The dollar index, which measures the currency against six peers including the euro and sterling, dropped as low as 102.800 after hitting a 1-1/2-month high at…
Wednesday’s minutes of the Federal Reserve’s July meeting will be closely watched as investors look for guidance on the near-term path of interest rates. Retail sales data and retail earnings will give insights into the health of consumer spending while data out of China is expected to underline concerns over the faltering recovery in the world’s number two economy. Here’s what you need to know to start your week. 1. Fed minutesBefore markets start turning their attention to the Fed’s annual get together in Jackson Hole, Wyoming at the end of the month, investors will be focusing on Wednesday’s minutes…
The dollar rose on Friday after a slightly bigger increase in U.S. producer prices in July lifted Treasury yields higher even as speculation grows that the Federal Reserve is at the end of hiking interest rates. Rebounding cost of services at the fastest pace in nearly a year pushed the Producer Price Index higher and unsettled traders who also saw the yen cross the 145-for-$1 threshold that triggered Japanese intervention in September 2022. The PPI for final demand rose 0.3%, the Labor Department said, as data for June was revised lower to show the PPI unchanged, instead of rising by…
