LONDON, April 21 (Reuters) - The U.S. dollar firmed on Wednesday, rising from a seven-week low hit overnight, as broad-based weakness in stock markets triggered by a resurgence of COVID-19 cases in countries from India to Japan fuelled renewed appetite for the greenback.
The safety bid also supported the Swiss franc and the Japanese yen as the outlook for the global economy soured.
The dollar index, which tracks the U.S. currency against six major peers, was up 0.14% at 91.347 in early London trading after slumping as low as 90.856 on Tuesday for the first time since March 3. It has declined 2.4% so far this month.
LONDON, March 16 (Reuters) - A cautious tone dominated currency markets on Tuesday, before the start of the U.S. Federal Reserve’s two-day monetary policy meeting.
The Fed’s policymakers are expected to forecast that the U.S. economy will grow in 2021 at its fastest rate in decades, with unemployment falling and inflation rising, but are not considered likely to change their monetary policy.
The dollar index held steady overnight then rose as European markets opened, up 0.1% on the day at 91.946 at 0804 GMT.
“Overall, the economic situation is improving further. What is decisive for the market is how the central banks react to this,” You-Na Park-Heger, FX and EM analyst at Commerzbank, wrote in a note to clients.
ECB expected to signal faster money printing
LONDON, March 11 (Reuters) - The dollar index fell to its lowest in a week early in Thursday’s European session and there was a mild “risk on” tone in currency markets, as attention turned to the European Central Bank’s policy meeting.
Softer consumer prices data in the United States on Wednesday helped to ease fears about a possible spike in inflation when economies re-open from the COVID-19 pandemic. U.S. Treasury yields declined from their recent spike.
At the European Central Bank meeting, policymakers are expected to send a message that they will prevent bond yields from rising further and harming the bloc’s economic outlook.
LONDON, March 8 Reuters) - The U.S. dollar gained on Monday, climbing towards a 3-1/2-month high, as a broad rise in Treasury yields spooked investor sentiment in stock markets.