Dollar Down, as U.S. Yields Fall, Bets on Fed Tightening Slide By Investing.com

Dollar Down, as U.S. Yields Fall, Bets on Fed Tightening Slide By Investing.com


© Reuters.

By Gina Lee

Investing.com – The dollar was down on Wednesday morning in Asia, as U.S. bond yields fell and investors retreated from aggressive expectations that the U.S. Federal Reserve will tighten its policy earlier than expected.

The that tracks the greenback against a basket of other currencies inched down 0.02% to 92.330 by 12:51 AM ET (4:51 AM GMT). The index hovered near a two-week low, slipping further from a five-month high of 93.439 set on Mar. 31.

The pair inched down 0.01% to 109.73 continuing its decline from the one-year high of 110.97 reached during the previous week.

The pair inched down 0.08% to 0.7655 and the pair inched down 0.01% to 0.7056.

The pair inched up 0.05% to 6.5403. Investors digested the released by China on Tuesday, with March’s reading at 54.3, higher than February’s 51.5 reading. China will release inflation data, including the and indexes, on Friday.

The pair inched up 0.04% to 1.3829.

A rosier economic outlook, with U.S. economic growth and inflation both accelerating, could see the earlier than indicated. Interest rate futures earlier in the week priced in a rate hike as early as late 2022.

Investors now await the minutes from the Fed’s March meeting later in the day, and chairman Jerome Powell’s remarks at a panel about the global economy a day later.

Meanwhile, U.S. Treasury yields also fell, with the five-year note dropping sharply to 0.874% after hitting a 14-month high of 0.988% on Monday. The note is now viewed as a major barometer of how much faith investors have in the Fed’s pledge that it does not expect to raise interest rates until 2024.

Some investors view the dollar’s retreat as a correction after its rally in February. Against the yen particularly, the greenback recorded its biggest monthly gains in more than four years in March, rising almost 4%.

“Last quarter, the dollar got a boost from the Senate runoff in Georgia, Biden administration’s COVID-19 relief package and then infrastructure plan. This quarter we are running out of such big themes and the market will be looking to economic fundamentals. We expect the dollar to remain strong, but it is unlikely to rise as much as it did last quarter,” Barclays (LON:) senior currency strategist Shinichiro Kadota told Reuters.

On the cryptocurrency front, was flat at $57,966.

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.





Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *