Dollar steadies, yen teeters ahead of key US inflation data

For the quarter ending later this week the yen is the worst-performing major, down more than 7% on the dollar even after Japan's exit last week from negative interest rates.

Officials have been making near daily warnings against speculative moves and markets are jittery about a test of 152 per dollar as Finance Minister Shunichi Suzuki said Japan won't rule out any steps if it thinks the yen is falling too fast.

"The () hike was seen as a non-event but it ended eight years of negative rates and unorthodox policy and with it also their forward guidance," said Bob Savage, BNY Mellon's head of markets strategy.

"The risk of a more hawkish BOJ and more yen focus from the BOJ and (finance ministry) remain in play."

BOJ board member Naoki Tamura will make a speech and hold a news conference during the Asia session on Wednesday.

China set a firm onshore fixing for the yuan, as it leans against market selling pressure that sent the currency down sharply to a four-month low on Friday. It was steady at 7.25 per dollar in offshore trade on Tuesday.

Australian data published in the morning showed inflation holding at a two-year low of 3.4% in February, reinforcing market wagers that the next move in interest rates would be down. The Aussie slipped 0.1% to $0.6525.

It is down 4.3% for the quarter. Other morning moves in Asia were marginal with markets waiting for Friday's release of U.S. core inflation data.

Overnight data showed a bigger-than-expected jump in U.S. durable goods orders in February. While that only partly made up for a large drop in January and came with sub-par consumer confidence data, it pushed the dollar up a little bit.

The euro, at $1.0829 is more or less in the middle of a range it has kept for a year and is down 1.9% for a quarter where expectations for U.S. rate cuts have been scaled back.

The Swiss franc, still reeling from a surprise rate cut in Switzerland last week, fell about 0.5% on the dollar to a four-month low of 0.9042 overnight.

It is down about 7% for the first quarter of the year. The U.S. dollar index is up 2.9% for the quarter to 104.31.

Sterling was steady at $1.2621 and was broadly steady for the quarter, too, down just 0.8%.

On Tuesday Bank of England policymaker Catherine Mann said she changed her mind to vote for a rate hold last week, instead of a hike, due to consumers turning more stingy. But she still believes financial markets have too many cuts priced in.

Rate cut expectations have weighed the New Zealand dollar, which was clinging on to $0.60 in Asia trade having fallen 5% against the dollar through the quarter.

New Zealand's Treasury revised its economic growth forecasts lower on Tuesday.

"U.S dollar momentum is positive, and recent NZ data has been weak," noted analysts at Westpac who recommend a short kiwi position.

Source: Forex-Markets-Economic Times

Publicații recente
Amazon doubles down on AI startup Anthropic with another $4 billion
23.11.2024 - 11:00
Dollar climbs, euro weakens to two-year low after PMI data
23.11.2024 - 11:00
Dollar keeps rising; euro falls to two-year low on weak data
22.11.2024 - 12:00
Asian FX muted as dollar remains at 1-yr high; yen steady as inflation rises
22.11.2024 - 07:00
Dollar rises after claims data, bitcoin continues rally
21.11.2024 - 22:00
STOXX 600 snaps four-day losing streak on energy, tech boost
21.11.2024 - 19:00
Deere's profit beat overshadows tepid 2025 outlook, shares rise
21.11.2024 - 19:00
Dollar rises after claims data, bitcoin climb continues
21.11.2024 - 18:00
Deere forecasts weak annual profit as farm incomes sag
21.11.2024 - 15:00
US indictments scythe $27 billion off value of India's Adani Group firms
21.11.2024 - 13:00
Deere forecasts annual profit below estimates as farm equipment demand slumps
21.11.2024 - 13:00
Sterling sags as 'Trump bump' lifts dollar
21.11.2024 - 13:00
STOXX 600 drops for fifth day, Nvidia drags European chip stocks
21.11.2024 - 12:00
Dollar steady near recent highs; euro suffers more weakness
21.11.2024 - 12:00
US indictments scythe $34 billion from value of India's Adani Group firms
21.11.2024 - 11:00

© Analytic DC. All Rights Reserved.

new
Analiza pieței Cum va afecta raportul NFP de mâine cursul de schimb al dolarului american?