EU keeps UK waiting on Brexit delay, Johnson gears for an election    African continent is one of the main markets attracting investment and trade    EU lawmakers reject Turkey's 'safe zone' in Syria, eye sanctions steps    Putin aims to boost Moscow's clout with Russia-Africa summit    River reaches Copa Libertadores final despite loss at Boca    Germany may grant UK short Brexit extension to allow smooth ratification    Guardiola backs 'extraordinary' Sterling to keep on improving    Manchester United ban supporter for alleged racist abuse in Liverpool draw    Cairo to host Munich Security Conference follow-up meeting this week    Egypt's Investment Minister praises China's Belt, Road initiative    Gold moves sideways as investors seek clarity on Brexit, trade war    Oil drops after data shows bigger-than-expected build in U.S. inventory    European markets mostly lower as Brexit hits another roadblock    Deploying all tools for GERD    Selling water and electricity to Egypt    ‘Uncovering the potential for cooperation'    Cairo drowning    Taxes on the bourse    Liverpool's Egyptian star Mohamed Salah among 2019 Ballon d'Or nominees    Egypt's parliament endorses €205 mln loan deal with EBRD to upgrade Cairo Metro's first line    Egypt's train fares to not increase until developing services – minister    Liverpool's Egyptian winger Salah ruled out of Manchester United clash    WHO hails 'triumph' as Ebola vaccine gets European green light    Current and ex smokers may lower lung cancer risk with exercise    France's President Macron receives Egypt's Coptic Pope Tawadros II at Elysee    After a young pupil dies of meningitis in Egypt, tips to help prevention    Grand Nile Tower Arts & Cultural Centre launches second round    Egypt's coach Hossam El-Badry satisfied with winning start despite technical problems    Luxor's new discoveries    Moroccan film Nomades scoops awards in Alexandria Film Festival    Six authors vie for Booker prize 2019, Atwood in the lead    In Photos: A sneak peek into rehearsals for the Cleopatra ballet world premiere    Sisi: army engaged in attrition phase against terrorism in Sinai since 2013    Sisi, Ethiopia's PM to meet in Moscow to discuss GERD issue    Sisi, Ethiopia's PM agree to overcome obstacles in Nile dam talks    Farwell to Egyptian comic actor Talaat Zakaria    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







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Dollar Probes Lows On Risk Aversion, Dovish Rate Hike Outlook
Published in Amwal Al Ghad on 14 - 10 - 2014

The dollar probed recent lows on Tuesday as risk aversion amid the fall in global equities favored peers such as the yen, with uncertain timing about the Federal Reserve's interest rate hike further undermining the U.S. currency's appeal.
The dollar index .DXY was down 0.2 percent at 85.332, well below the four-year high of 86.746 struck earlier this month when a Fed rate hike in the near term seemed more likely.
The dollar crawled up 0.2 percent to 107.095, but remained in close range of a one-month low of 106.76 hit earlier in the session.
The greenback suffered a heavy blow overnight against the safe-haven yen as Wall Street took large hits, with the S&P 500 .SPX sliding to a five-month low.
Weak signals from Germany, the euro zone's largest economy, and signs of uneven growth in China have contributed to recent global growth concerns.
Global equities slid in the face of these concerns, with the widening Ebola epidemic further undermining risk sentiment.
Federal Reserve officials warned at the weekend that if the global recovery stumbled, it could delay an increase in U.S. interest rates.
"There is some bargain hunting for the dollar but it looks poised to test further lows against the yen for the time being. With U.S. stocks falling this much, risk-off bids for the yen stand out," said Shinichiro Kadota, chief Japan FX strategist at Barclays Bank in Tokyo.
The dollar also attracted demand when global growth concerns began to sour a while back, but sliding U.S. equities have accentuated the 'risk-off' bids for the yen, Kadota said.
The Tokyo financial markets tried to take stock of recent developments after the Japanese markets were closed on Monday for a public holiday.
The euro was steady at $1.2737 EUR= after surging nearly one percent overnight. A rise above $1.2797 would take the common currency to a three-week high.
With Germany's economic outlook and its potential impact on the Fed's views on the global economy in recent focus, the currency market will scrutinize Germany's ZEW sentiment index due later in the session.
The Australian dollar dipped 0.2 percent to $0.8752 AUD=D4 as the region's equity markets fell and sapped risk aversion.
The Aussie had pulled back from a near-four year low of $0.8652 the previous day, given some respite by stronger-than-expected Chinese trade data.
Source : Reuters


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