USD steady in Asia as commods, virus worries provide bid
SINGAPORE, May 21 (Reuters) - The dollar hovered around recent lows on Friday and was set to notch a modest weekly drop as traders’ concerns at taper talk in Federal Reserve minutes faded, though a pullback in commodity prices and nerves about virus outbreaks kept losses in check.
The dollar has given back a bounce it made after a mention of possible future tapering discussions, in minutes from the Fed’s April meeting, prompted fears of early rate rises.
Investors now figure that any action remains a long way away and that the path might again be clear for a resumption of April’s downtrend as the U.S. trade and account deficits weigh.
Euro breaks to nine-week peak, CAD to 3-year high U.S. GDP set to be strong, trade and budget deficits a drag
SYDNEY, April 29 (Reuters) - The dollar was pinned near nine-week lows on Thursday as a doggedly dovish outlook from the U.S. Federal Reserve and bold spending plans from the White House gave a green light for the global reflation trade.
President Joe Biden’s push for another $1.8 trillion in spending also risked expanding the U.S. budget and trade deficits, a perennial Achilles heel for the dollar.
The euro made the most of the opportunity to hit its highest since late February at $1.2149, before steadying at $1.2134. The break of trendline resistance at $1.2114 opens the way to bull targets at $1.2196 and $1.2242.
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.
Euro hits 5-month low vs dollar ADP data shows increased hiring for February Graphic: World FX rates tmsnrt.rs/2RBWI5E (Adds new comment, U.S. data, updates prices, changes byline, dateline; previous LONDON)
NEW YORK, March 31 (Reuters) - The dollar hit a one-year high versus the yen and multi-month peaks with other currencies on Wednesday as investors bet that fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery.
The dollar index, a gauge of its value against six major currencies, however fell 0.2% to 93.075. But it was on track to post its best quarter since June 2018 with gains of 3.4%.
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.