Gas factory blast in China's Henan province kills two, seriously injured 18: State media    Blast at Kabul University kills eight, injures 33    After appointing new female judge, will Egypt see more women in courts?    Egypt's PM follows up implementation of Luxor's Corniche development project    Iran dismisses Trump report that US Navy downed "provocative" drone    Egypt's PM holds talks with UNIDO representative on developing industry    Egypt tells citizens that Saudi e-visa not meant for hajj    Rondon links up with Benitez at China's Dalian Yifang    Eriksen trains alone on Spurs pre-season tour    Arsenal's Emery talks up leadership role for Holding amid Koscielny doubt    Algerian team came to Cairo to win AFCON title: Djamel Belmadi    Egypt, Uzbekistan study establishing pharmaceutical plant    Nexign, Giza Systems agree to accelerate African telcos' digital transformation    Maintaining or starting exercise in middle age means longer life    Unbowed, U.S Trump intensifies attacks on 4 Democratic congresswomen    From Iraq to Yemen, drones raise U.S. alarm over Iranian plans    Air-to-air missile seized in Italy was sold 25 years ago: Qatar    NBE's mortgage finance portfolio exceeds EGP 7bn end-June    Belgium's Port of Antwerp to develop bunkering activity in Egypt    Sudan's military, opposition sign 1st part of power-sharing deal    Peace with Egypt must be made: Turkey's main opposition leader    King Tut's golden coffin undergoes first restoration since 1922 discovery    Changing dominant narrative of women on stage    Crude futures firm as U.S. stockpiles of oil products gain    IMF to hand Egypt's final tranche of $12bn July 24 – PM    Mainland Chinese markets fall amid renewed threat to trade    Explorations of music, sound, architecture of Islamic Cairo and everyday life    Farewell to Italy's best-loved writer Andrea Camilleri    Total of 59,455 expats in Egypt have undergone virus C screening    Parliament Speaker announces end of fourth legislative term    Renovation of Egyptian Museum to include installing new lighting, display systems    Kenya eyes partnership with Egypt's energy sector: Minister    Egypt's parliament starts new NGO law discussion    Egypt's parliament Oks new NGO law    Egypt's parliament's 5th convocation sessions to be aired live: Parliament speaker    Egypt's parliament approves new NGO law    4th convocation of parliament concluded    Cairo hosts 6th meeting of Egyptian-Sudanese military committee    Egypt prosecution releases transgender woman detained on terrorism related charges    Egypt inaugurates museum to honor late novelist Naguib Mahfouz    Egypt to sue following sale of $5.97mn Pharaoh Tutankhamun statue    Bookmakers expects Egypt's Mo Salah might miss the year's Ballon D'or award    Fired MP detained pending investigations over corruption charges    Egypt arrests founder of pro-Mubarak Facebook page – source    Egypt sees national population growth rate to halve before 2052    AFCON quarter-finals: Desert Warriors face Ivorian Elephants in early final    Orange Egypt removes Warda from ad campaign after harassment case    Hassan Shehata slams Egyptian team, EFA following AFCON exit    







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





Dollar falls on Fed prospects; safe-haven Swiss franc, gold shine
Published in Amwal Al Ghad on 25 - 06 - 2019

The dollar hit a multi-month low against the euro and the yen on Tuesday on the prospects of monetary easing by the Federal Reserve while the safe-haven Swiss franc and gold rose on Middle East tensions.
The euro hit a three-month high of $1.14105, having gained 2.0% from a two-week low of $1.1181 touched a week ago as the dollar has lost steam. It last stood at $1.1406, up slightly on the day.
The U.S. currency slipped 0.35% to 106.93 yen, its lowest since its flash crash in early January.
The dollar index against a basket of six major rivals fell to its lowest level in three months to 95.943, having lost 1.7% during the latest five sessions.
Selling in the dollar has accelerated after the U.S. Federal Reserve last week signaled it would cut interest rates before year-end on mounting worries about fallout from tariff wars President Donald Trump is waging against China and other trading partners.
U.S. bond yields dropped on Monday, with money market derivatives increasing bets on a 50-basis-point rate cut next month. A 25 basis-point cut is already fully priced in.
Fed Chairman Jerome Powell and a few other of its policymakers are due to speak later on Tuesday.
Investors are waiting to see whether Trump and Chinese President Xi Jinping would at least call a truce in their trade war when they meet at the G20 summit in Osaka late this week.
Trump considers his meeting with Xi an opportunity to "maintain his engagement" and see where China is on their trade dispute, a senior U.S. official said on Monday.
Senior Chinese and U.S. trade officials spoke by telephone on Monday.
Kazushige Kaida, head of forex at State Street Global Markets in Tokyo, said he believes the current market consensus is that the two leaders are "unlikely to agree on a deal."
If there's no trade agreement, Trump's administration could levy tariffs on an additional $300 billion of Chinese imports as early as next month, a step that would cement expectations of a large rate cut by the Fed.
Strait of Hormuz
The dollar's weakness was the most notable against traditional safe-haven assets, reflecting concerns about tensions between the United States and Iran.
Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran, after Tehran's downing of an unmanned American drone near the Strait of Hormuz.
The dollar slipped to 0.9710 franc, its lowest since late September.
The Swiss currency held firm against the euro to 1.1072 per euro, within touching distance of 1.1057 hit on Thursday, its highest since July 2017.
Gold also shot up 0.85% to $1,431.2 per ounce, reaching its highest levels in nearly six years.
Even the price of bitcoin held firm, staying near a one-year high above $11,000.
"Assets that can be used as an alternative means of settlement are favoured, as the dollar is being shunned. Geopolitics and the Fed are two main reasons behind this," said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank.
The British pound remains dogged by Brexit concerns as eurosceptic Boris Johnson is seen as likely to win a majority of votes from Conservative party members who will decide the next leader and prime minister.
Johnson reiterated his promise to take Britain out of the European Union on Oct. 31, with or without a deal.
The pound fetched $1.2743, capped by resistance around $1.2760-65.
Against the euro, the pound was on the back foot at 89.455 pence per euro, near five-month lows of 89.74 set a week ago.
Source: Reuters


Clic here to read the story from its source.