Egypt earns praise for hosting 2025 Pan Arab Golf Championship for Juniors and Ladies    Saudi Arabia commits to $600bn US investment in new strategic agreement    Egypt's Al-Mashat meets AfDB President, focus on private sector, continental integration    UPDATE: Trump secures 'historic' $600b investment commitment in Saudi Arabia    US CPI-U eases, 2.3% up YoY in April    URGENT: Saudi Arabia, US sign economic strategic partnership agreement    Asia-Pacific markets mixed after US-China tariff pause    Egypt, Türkiye FMs discuss Gaza, Libya    Egyptian pound maintains stability vs. USD in early trade    Hamas releases US-Israeli detainee Edan Alexander amid ceasefire uncertainty    Egypt's exports rise 24.1% in February 2025 as trade deficit shrinks by nearly third    Trump signs executive order to cut drug prices by at least 59%    White House releases Trump's drug price overhaul order    Flowers as a Form of Communication: Why It Still Matters to Give the Living    Empower Her Art Forum Returns for Third Edition at Grand Egyptian Museum    Egypt scales up drug output, sees $466m in pharma exports by 2029    Egypt hosts 170 pharmaceutical factories, 11 with international accreditation: EDA    Egypt expands migratory bird conservation, eco-tourism initiatives    Gaza faces famine, health collapse amid intensifying Israeli siege, bombardment    Sandoz launches new OMNITROPE growth hormone concentration in Egypt    Third "Empower Her Art Forum" to launch at Grand Egyptian Museum    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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



Dollar slips versus yen as growth concerns shake confidence
Published in Amwal Al Ghad on 06 - 12 - 2018

The dollar fell against the yen on Thursday as growing investor aversion to riskier assets hit equities and pushed down U.S. Treasury yields.
The U.S. currency dropped 0.45 percent to 112.68 yen, handing back its modest gains made overnight.
Global equity markets have been shaken and the dollar fell this week after an inversion in a part of the U.S. Treasury yield curve triggered market concerns about economic growth.
Adding to the jitters on Thursday was the arrest in Canada of a top executive of Chinese tech giant Huawei Technologies, fanning fears of a flare-up in tensions between China and the United States just as the two sides are supposed to be resuming trade negotiations.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.93 percent and Japan's Nikkei lost more than 2 percent.
U.S. Treasury yields fell, pressuring the dollar.
"Lower Treasury yields are driving the dollar lower against the yen. It is difficult to pinpoint how much funds investors have transferred from equities to bonds in the recent risk aversion and it is too early to call a bottom for Treasury yields," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
The 10-year Treasury yield last stood at 2.8829 percent.
Signals from the Federal Reserve last week that it may be nearing an end to its three-year rate hiking cycle have helped trigger the slide in Treasury yields.
The spread between the two-year and five-year Treasury yields inverted this week and the two-year/10-year spread was at its flattest in more than a decade amid a sharp fall in long-term rates.
A flatter curve is seen as an indicator of a slowing economy, with lower longer-dated yields suggesting a potential recession down the road.
"The dollar could remain under pressure until this month's Fed meeting as long-term Treasury yields may not be able to mount a rebound until the market sees the Fed's stance on policy and the economy," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
"The recent reaction to the U.S. yield curve inversion appears a little hysterical, but the dollar will not be given the all clear sign until the Fed meeting is hurdled."
Fed policymakers are still widely expected to raise interest rates again at their Dec 18-19 meeting, but the market focus is on how many rate hikes will follow in 2019.
The yen, often sought in times of market unrest, made strides against other peers as well.
The euro lost 0.42 percent to 127.85 yen, the Australian dollar slumped 1.02 percent to 81.44 yen and the pound fell 0.55 percent to 143.33 yen.
The euro was little changed at $1.1346 after retreating from this week's high of $1.1419 scaled on Tuesday.
The Australian dollar, sensitive to swings in risk sentiment, was down 0.58 percent at $0.7226.
The Aussie was already on a shaky footing after shedding nearly 1 percent the previous day on weaker-than-expected third quarter Australian gross domestic product data.
The pound was a shade lower at $1.2723.
Sterling had sunk to a 17-month low of $1.2659 at one point on Tuesday after parliamentary setbacks for Prime Minister Theresa May.
Source: Reuters


Clic here to read the story from its source.