Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Trading

Dollar’s post-Fed fall to one-month low lifts other currencies

2021 07 29T014235Z 1 LYNXMPEH6S01G RTROPTP 4 GLOBAL MARKETS OUTLOOK - Global Banking | Finance

By Sujata Rao

LONDON (Reuters) -The dollar slipped to a one-month low on Thursday after the U.S. Fed’s reassurance that interest rate hikes remain distant gave a major boost to most other currencies from the Aussie dollar to the Chinese yuan.

China’s efforts to soothe stock market jitters precipitated by its own regulatory crackdown on some sectors also helped, with the yuan rising for the second day in a row to touch a one-week high versus the greenback.

A month of gains for the dollar had already lost momentum leading in to Wednesday’s Federal Reserve meeting and Chairman Jerome Powell’s remark that rate increases were “a ways away” was enough to tip it lower still. (nL1N2P30V1)

U.S. Treasury yields trended lower after the statement and on Thursday the 10-year yield slipped further and the real yield — adjusted for inflation — tumbled to a new record low around minus 1.175%.

By 1115 GMT, the dollar inched 0.2% lower against a currency basket at 92.05, down for the fourth straight day.

“We saw the dollar weaken overnight and that’s people taking profit on long dollar positions,” said Peter Kinsella, head of FX strategy at UBP.

He said it appeared likely the Fed would commence tapering around year-end with rate rises starting in 2023.

“Mr Powell told us what we already knew. We got no new indication on timing of taper or rate hikes and what that means is that the payrolls data will be pretty important for the next two-three months,” Kinsella added.

The dollar moves allowed the euro to edge up to $1.188, a two-week peak.

The Australian and New Zealand dollars, reliant on world and Chinese economic growth, extended gains made on Wednesday, adding more than 0.4%, though the Aussie was capped by concerns a lengthening COVID-19 lockdown in Sydney would drag on the national economy.

The Canadian dollar also rose as much as 0.6% to two-week highs

Sterling, which has been surging on optimism over the re-opening of the British economy, touched a one-month high of $1.397.

Dust was settling after the storm triggered by Beijing’s decision to tighten curbs on the for-profit tutoring sector, soon after its campaign against tech giants and new regulations for home-grown companies looking to list overseas.

China’s Securities and Regulatory Commission (CSRC) on Wednesday held a meeting with executives of top global investment banks to calm financial markets nerves, people familiar with the matter told Reuters.

The offshore-traded yuan rose 0.4% and an emerging currency index hit two-week highs, up 0.6%

Kinsella did not anticipate much yuan weakening from here

“It’s important to remember that China still has a closed capital account so they can control what the yuan does. We will go back to where we were when people get more relaxed on the regulatory outlook,” he added.

Global COVID-19 cases remain a concern for investors, although the safe-haven Japanese yen and Swiss franc were both lower on Thursday.

(Reporting by Sujata Rao; Editing by Kim Coghill and Mike Harrison)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post