Slot Gacor Gampang Menang Situs Slot Gacor

Dollar stands high when investors seek shelter

A customer pays cash at a Best Buy store in Texas, USA, November 26, 2010.

Aaron M. Sprecher | Bloomberg | Getty Images

The dollar found broad support Monday as global political uncertainty and fears of an expansion of the Sino-American trade war kept investors in safe havens ahead of a number of global economic indicators this week.

Greenback was consistent with most major currencies. It held on to the Japanese yen at $ 1[ads1]08.93 per dollar and sterling to $ 1.2287, while easing heavily against the euro at $ 1.0932.

It achieved against risky, trading-exposed currencies such as the Australian dollar and the Chinese yuan. The biggest loser was the New Zealand dollar, which fell half a percentage point when business confidence hit its weakest in more than 11 years.

"Risk conditions are prevalent in the market," said Anthony Doyle, worldwide asset specialist at fund manager Fidelity International in Sydney, citing US political turmoil and Brexit as threatening concerns, besides the trade war.

"There's a lot of uncertainty out there," he said.

In Asian hours, traders mostly pulled out news that the Trump administration was considering removing Chinese companies from the US stock markets after reports were released by State Department officials.

Elsewhere, studies of factory operations in China suggested that there were some signs of improvement this month, although analysts believe the gains could not be sustained and predict further financial weakness.

In Australia, forecasts for a cut in interest rates on Tuesday were strengthened with increasing economic hardship. Markets are pricing better than the 75% chance that the Reserve Bank of Australia will reduce its cash rate for the third time this year.

German inflation, UK economic growth and US production indicators are all due later on Monday, with US employment figures at the end of the week. Anything that lacks expectations poses a risk of fragile sentiment.

Against a basket of currencies, the dollar rose to 99.165.

The New Zealand dollar fell as low as $ 0.6257, very close to a four-year low, as a survey showed sour business sentiment and sued a rate cut.

The Australian dollar also drifted lower to $ 0.6756 on monetary easing expectations.

With markets largely baking in a new interest rate cut, further movements in the Aussie are likely to be driven by RBA's tone and vision, said Chris Weston, research manager for the Pepperstone Group brokerage in Melbourne.

Traders expect a break in the headlines of the trade war as China takes a week-long holiday from Tuesday, marking the 70th anniversary of the People's Republic of China.

China's yuan remained stable at 7,1219 per dollar.

Source link

Back to top button