Dollar Down, Set for Weekly Loss as Fed Taper Talk Concerns Diminish By Investing.com

Dollar Down, Set for Weekly Loss as Fed Taper Talk Concerns Diminish By Investing.com


© Reuters.

By Gina Lee

Investing.com – The dollar was down on Friday morning in Asia, staying near milestone lows and set to record a weekly loss. Investors’ risk appetite increased as concerns about the U.S. Federal Reserve’s hint of tapering eased, and economic recovery from COVID-19 gave other currencies a boost against the greenback.

The that tracks the greenback against a basket of other currencies inched down 0.08% to 89.725 by 13:05 PM ET (5:05 AM GMT), falling below the 90-mark.

The pair inched up 0.02% to 108.78 as April’s data released earlier in the day showed the contracted 0.1% year-on-year, better than the 0.2% contraction in forecasts prepared by investing.com, while its contracted 0.4% month-on-month, which was larger than March’s 0.2% growth.

The pair edged down 0.19% to 0.7760 as Australia released its April’s earlier in the day. Across the Tasman Sea, the pair edged down 0.20% to 0.7188.

The pair inched down 0.01 to 6.4334.

The pair inched down 0.03% to 1.4185 as investors await U.K. data for April due later in the day. The U.K. will also release its , and purchasing managers’ indexes for May.

In the U.S., showed that the fell to 444,000 over the past week, below 450,000 claims in forecasts prepared by Investing.com and 478,000 reading filed during the previous week.

Investors also seem less concerned about the Fed’s minutes from its latest meeting, released on Wednesday, which hinted at a scale-back of asset purchases.

“It has been just over 24 hours since markets got spooked by the prospect of the U.S. Fed tapering its asset purchases, but having proverbially slept on it, the mood seems less sour today,” ANZ analysts said in a note.

“Which seems reasonable, it’s not like the Fed is on the brink of wanting to actually act,” the noted added.

The benchmark slide to 1.6340% overnight, trading between roughly 1.5% and 1.7% for two months.

“The world was, is and will remain awash with cheap dollars,” Societe Generale (OTC:) strategist Kit Juckes told Reuters.

“As long as the Fed is talking about talking about tapering, Treasuries are likely to remain stuck in their range and the dollar’s path of least resistance is to go on falling, albeit slowly.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply