Connect with us

Business

Dollar trades near two-week low as US yields fall

Avatar

Published

on


LONDON (Reuters) – The US dollar traded near its lowest in more than two weeks against its major peers on Thursday, followed by lower Treasury yields, after minutes from the March policy meeting on the federal reserves offered no new catalyst to dictate the direction of the market.

FILE PHOTO: The US dollar bills are seen in front of the stock chart displayed in this illustration taken February 8, 2021. REUTERS / Dado Ruvic / Illustration / File Photo

Fed officials have remained cautious about pandemic risks – even as the US recovery accelerates amid massive stimulus – and pledged to provide monetary policy support until a rebound be safer, according to the report Wednesday.

Fed Chairman Jerome Powell will speak at a virtual International Monetary Fund conference later Thursday.

The dollar index, which measures the US currency against a basket of six currencies, edged down to 92.30 in London trading, after falling to 92.134 on Wednesday for the first time since March 23.

The index hit an almost five-month high of 93.439 at the end of last month, as the resumption of the US pandemic overtook that of most other developed countries, particularly in Europe.

The Fed minutes did not bring any negative surprise to risk sentiment, with the committee reiterating that there is no need to rush into tighter monetary conditions and further support the recovery, said Petr Krpata, Chief Currency and Interest Rate Strategist in EMEA at ING.

We expect the very accommodating Fed to eventually weigh on the USD as we move into the summer – rising inflation, but no sign of an impending rate hike will push real US rates down. Entry further into the negative trough, and coupled with the recovery in the global economy (which should be more synchronized in nature in 2H21), should weigh on the USD.

The benchmark 10-year Treasury yield was around 1.658% on Thursday, after falling below 1.63% overnight. It hit 1.776% at the end of last month, its highest level in over a year.

The S&P 500 posted a modest gain on Wednesday, moving mostly sideways since reaching an all-time high to start the week.

Citigroup Global Markets Japan’s chief currency strategist Osamu Takashima said the direction of the markets was difficult to follow but expects the dollar’s next move to be lower.

The current market sentiment is slightly risky, and under such circumstances the dollar will gradually weaken – but no big move, he said.

The decline in US rates also eliminated an engine of dollar gains, he added.

The dollar weakened to 109.49 yen, consolidating after declining 110.97, its highest in more than a year, reached on March 31.

The euro was virtually unchanged from Wednesday at $ 1.1876, after rebounding from $ 1.1704, its lowest in nearly five months, hit on March 31.

Immunization progress in the euro area is significantly lower than in the United States, and coronavirus infection rates in the euro area are on the rise again, wrote Joseph Capurso, strategist at the Commonwealth Bank of Australia , in a customer note.

As such, EUR / USD is vulnerable to a move lower towards 1.1700 in the near term.

Reporting by Ritvik Carvalho; additional reporting by Kevin Buckland in Tokyo; edited by Larry King

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]