US Democrat Schiff says Trump's Ukraine call could justify impeachment    Egypt adopts integrated plan to improve cotton and textile industries: Public business sector minister    Busy schedule for President Sisi on sidelines of the UNGA session    Egypt's indexes fall to multi-year lows as protests weigh in    Travel group Thomas Cook battles for survival with final creditor meeting    UN agency: Tanzania not sharing details on Ebola-like cases    Valverde worried by Barca's limp away form after Granada defeat    Amazon's Jeff Bezos pledges to swiftly combat climate change    Baby gut study finds bacteria different after C-section births    Live score: Arsenal v Aston Villa (English Premier League)    Zidane unfazed by Mourinho talk as Real prepare for Sevilla test    Saudi Arabia says if attack launched from Iran, it would be an act of war: CNN    Ukraine's president promises to safeguard's independence at IMF meeting    Zamalek president Mortada Mansour talks Egypt's Super Cup, unveils reasons behind defeat    Hong Kong riot police curb airport anti-government protest after clashes    Huawei, China Mobile team up to bid for Brazil's Oi – report    Egypt's EGAS to clinch seven exploration agreements in Q4    Grand Egyptian Museum's construction works 93% complete    Egypt's Health Ministry bans all ranitidine medicines    Thomas Cook in talks with UK government and investors over rescue deal    El Gouna Film Festival celebrates 100th birth anniversary of novelist Ihsan Abdel-Quddous    FIPRESCI and Netpack hosted by El Gouna Film festival for the first time    Small protests in Egypt dispersed by police    Ahly wins Egyptian Super Cup after beating Zamalek    Rare protests in Egyptian streets after online call for dissent    Egypt's tuk-tuk start-up Halan to tap Ethiopia before year-end    Egypt's health ministry bans all ranitidine medication    Cairo Opera hosts closing ceremony of the Cairo International Festival for Contemporary and Experimental Theatre    Allianz Egypt allots $399K to promote UNICEF's vulnerable children initiative    Felix Brych to referee Ahly-Zamalek Super Cup game in Egypt's Alexandria    'Egypt will not allow any country to impose its will on another in Ethiopian dam issue,' FM says    Egypt, Ethiopia at odds as talks over Blue Nile dam resume    Egypt says GERD talks with Ethiopia 'stumbled', next round in Khartoum in October    Egypt's Sisi discusses education, terrorism at national youth conference    Egypt's PM discusses details of Al-Hussein Mosque renovation    Egypt's Baron Empain Palace to be reopen after renovation    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"    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Dollar struggles at six-week low on cooling U.S. rate hike views
Published in Amwal Al Ghad on 03 - 08 - 2016

The dollar struggled near 6-week lows against a basket of currencies on Wednesday due expectations that the U.S. Federal Reserve will raise interest rates later rather than sooner.
The dollar's softness followed a weak showing by Wall Street overnight, with indexes suffering their worst day in roughly a month in the wake of unconvincing economic data and falling oil prices.
U.S. consumer spending rose but the markets focused more on Tuesday's lackluster inflation numbers. Economists say this, together with weak business investment and the second quarter's anemic economic growth rate, could encourage the Fed to keep interest rates at current low levels for a while.
"The dollar was ready for a correction after it went through a bullish phase on hopes that the Fed would raise rates. But I don't see the dollar falling much further from here. The U.S. economy may appear sluggish, but it is not stuck in a downtrend. The currency also serves as a safe haven," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo.
The dollar index .DXY was at 95.209, within close reach of the 6-week trough of 95.003 touched overnight. The index was at a 4-1/2-month high of 97.569 as recently as last Monday.
The euro was little changed at $1.1212 EUR= after gaining 0.6 percent overnight to touch $1.1234, its highest since the Brexit referendum.
The dollar was up 0.3 percent at 101.195 yen JPY=. It slid 1.5 percent the previous day when it fell to a 3-week trough of 100.680, amid some disappointment that a Tuesday meeting between Japanese Finance Minister Taro Aso and Bank of Japan Governor Haruhiko Kuroda did not result in steps to weaken the yen.
Junichi Ishikawa, currency analyst at IG Securities in Tokyo, reckons it is matter of time before the dollar breaks below the 100 yen threshold. The dollar briefly slipped below the watershed level in the stormy markets that followed Britain's vote to leave the European Union, but it has managed to stay above ever since.
"The break below 100 yen after Brexit was an irregular move. But this time, the yen is gaining steadily on fundamental factors like Japan's improving current account balance and fading impact of BOJ's multi-dimensional easing," Ishikawa said.
The Japanese central bank eased monetary policy on Friday by upping the amount of its exchange-traded fund purchases, but underwhelmed the markets by holding off from increasing the amount of government bond purchases.
Traders expected Japanese officials to try to talk the yen weaker to at least temporarily thwart a recovery below 100 to the dollar.
They also expected dollar demand to emerge at that level from Japanese investors like life insurers and pension funds, who have been steady buyers of foreign bonds.
The dollar's broad weakness helped the Australian dollar as well, as it rose about 1 percent overnight to a near 3-week high of $0.7638 despite an interest rate cut by the Reserve Bank of Australia.
The Aussie last traded at $0.7609 AUD=D4, effectively unchanged on the day.
The currency market awaited the July U.S. ADP private employment report and Institute for Supply Management (ISM) U.S. non-manufacturing activity data due later in the day for immediate cues. ECONUS.
Source: Reuters

Clic here to read the story from its source.