FOREX-Virus jitters keep dollar aloft - Reuters.com

    * Virus drives risk-averse trade in Asia
    * China GDP misses expectations, but domestic demand
impresses
    * Powell testimony to continue

    By Tom Westbrook
    SINGAPORE, July 15 (Reuters) - Spiking coronavirus cases
kept the dollar supported in Asia on Thursday and it clawed back
a little of a drop which had followed insistence from Federal
Reserve chair Jerome Powell that he isn't in a hurry to withdraw
policy support.
    The dollar was up about half a percent on the New Zealand
dollar by midday in Tokyo, up about 0.3% on the Australian
dollar and British pound and up roughly 0.1% against the euro.
    Cities from Seoul to Sydney are under lockdown as the
infectious Delta variant sweeps the globe. Infection rates are
rising in the United States, Singapore reported its sharpest
jump in cases in 10 months on Thursday and Indonesia is living
its government's worst-case COVID scenario.
    "Growth momentum, business confidence and investor sentiment
can be further crippled if lockdowns and restrictions are
prolonged," analysts at Maybank in Singapore said in a note.
    Mixed economic data in China - showing a largely expected
growth slowdown, but signs of more resilient domestic demand -
also did little to improve the mood.
    The safe-haven yen rose broadly, and was last up 0.1% at
109.86 per dollar and close to testing multi-month peaks
at 129.91 per euro. The Aussie fell to $0.7453
while the kiwi dipped below 70 cents to $0.6998.
    "The market is still on an uncertain path," said National
Australia Bank strategist Rodrigo Catril.
    "The big experiment is really the full reopening in the UK -
if that could be successful, we think it's going to be a huge
factor in terms of confidence and pricing a broader and
sustained recovery of the global economy."
    That could lead to a softer dollar as economies from Japan
to Europe catch up with the robust rebound in the U.S., he said.
    England plans to lift almost all COVID-related restrictions
on Monday, even as cases climb. Sterling reflected some
nerves about the prospect of failure, and fell below its 20-day
moving average to $1.3829. 
    
    POWELL PUSH    
    Powell returns to Capitol Hill later on Thursday for further
testimony before Congress, following remarks that toppled the
dollar from a three-month high on the euro on Wednesday.
    He had soothed rate hike fears by saying high inflation
seemed linked to the U.S. economy's reopening, that it would be
a mistake to act prematurely and that economic conditions for
tapering bond buying was "still a ways off".
    The subsequent support for the dollar, which still sits
above its 20- and 200-day moving averages against a basket of
six major currencies suggests investors were not entirely
convinced. The dollar index was last steady at 92.434.
    "Was anyone really expecting anything other than a dovish
Powell," OCBC Bank analysts Terence Wu and Frances Cheung asked
in a note.
    "No," they said. "He didn't provide new information in his
comments, but gave the excuse to profit-take on the dollar ...
we view the dip as part of the volatility and grind higher for
the greenback."
    Indeed the even sharp contrast in tone between Powell and
other central banks that are charting far faster courses away
from super-easy policy hasn't broken recent currency ranges.
    In New Zealand, for example, the central bank said on
Wednesday it would end its bond purchase programme next week,
but the resultant jump in the kiwi only took it to a one-week
high.
    The Aussie dollar likewise shrugged off figures showing
unemployment dropped to levels last seen in the midst of a
mining boom a decade ago - with traders nervous after reports
Melbourne is to join Sydney under lockdown.

    The Canadian dollar also weakened on Thursday -
with help from softening oil prices - even though the Bank of
Canada further tapered its policy support on Wednesday.

    "The dynamics of different currencies seem to be being
overwhelmed by the dollar dynamic," said NAB's Catril, something
he thinks can persist for some time.
    
    ========================================================
    Currency bid prices at 0350 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1830        $1.1837     -0.05%         -3.17%      +1.1838     +1.1822
 Dollar/Yen                   109.8600       109.9700    -0.08%         +6.38%      +110.0200   +109.8700
 Euro/Yen         <EURJPY=EB  129.95         130.12      -0.13%         +2.39%      +130.1900   +129.9000
                  S>                                                                            
 Dollar/Swiss                 0.9147         0.9143      +0.05%         +3.40%      +0.9154     +0.9144
 Sterling/Dollar              1.3832         1.3866      -0.26%         +1.22%      +1.3862     +1.3822
 Dollar/Canadian              1.2537         1.2516      +0.18%         -1.54%      +1.2548     +1.2509
 Aussie/Dollar                0.7463         0.7482      -0.24%         -2.98%      +0.7488     +0.7453
 NZ                           0.7012         0.7039      -0.36%         -2.33%      +0.7043     +0.6998
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ

    
 (Reporting by Tom Westbrook; Editing by Gerry Doyle and Kim
Coghill)
  

Adblock test (Why?)

https://www.reuters.com/article/global-forex-idUSL1N2OR09W

2021-07-15 04:08:00Z
CBMiOmh0dHBzOi8vd3d3LnJldXRlcnMuY29tL2FydGljbGUvZ2xvYmFsLWZvcmV4LWlkVVNMMU4yT1IwOVfSATRodHRwczovL21vYmlsZS5yZXV0ZXJzLmNvbS9hcnRpY2xlL2FtcC9pZFVTTDFOMk9SMDlX

Bagikan Berita Ini