International Development News
Development News Edition

FOREX-Dollar breaks 4-day losing streak on trade tensions


FOREX-Dollar breaks 4-day losing streak on trade tensions
Image Credit: Pixabay

The dollar firmed on Monday, breaking a four-day losing streak, as fresh concerns over the trade war between the United States and China kept risk appetite subdued and trade-oriented currencies such as the Australian dollar under pressure. A Bloomberg report that Chinese officials were reluctant to agree to U.S. President Donald Trump's broad trade deal cast a pall over investors, after weak U.S. economic data last week raised concerns about the economic outlook.

"The trade news has boosted safe-haven demand for the dollar and hit the high-beta currencies such as the Aussie and the Swedish crown," said Kamal Sharma, a London-based director of G10 FX strategy at Bank of America Merrill Lynch. The dollar, which tends to benefit when trade tensions flare up, rose further off one-month lows hit last week when a string of poor data suggested the conflict was inflicting a bigger toll on the world's biggest economy.

The greenback firmed 0.15% against a basket of currencies to 98.90, after weakening around 1% last week. It rose by more than 0.5% versus the Swedish crown and the Norwegian currency. "Markets have a bit of a risk-off tone today, and risk-off is generally dollar positive," Stephen Gallo, head of FX at BMO Capital Markets, said, though he noted the dollar faced short-term headwinds.

Hedge funds have added to their massive long dollar positions, which rose in the latest week to a nine-week high, according to Reuters calculations and Commodity Futures Trading Commission data released on Friday.. The euro remains out of favour, the data showed, with bearish bets on the currency climbing sharply.

The latest data appeared to justify the pessimism, with German industrial orders falling more than expected in August on weaker domestic demand - clear evidence that a manufacturing slump is pushing Europe's largest economy into recession. The euro traded as low as $1.0964 but held off 2-1/2-year lows of $1.0879 hit last Tuesday.

The Chinese yuan fell 0.3% to 7.13 per dollar in offshore trade. There was no onshore trading as China is still on a break for its national day. Gallo said the clouds over the dollar offered some support to the yuan. "If things break down this week, I don't think you will see dollar/yuan above 7.20 on that headline," he added.

Other trade-exposed currencies such as the Australian dollar and the Korean won also fell, with the former losing a quarter percent and the won down 0.4%. Sterling slipped 0.2% to around $1.23, with only a few weeks until the UK's scheduled exit from the European Union on Oct. 31.

Also Read: Imran Khan set to meet Donald Trump in New York

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

With Ayodhya verdict, CJI starts clearing high profile pending cases

Ending all the speculations, the Chief Justice of India Mr. Ranjan Gogoi who is due to retire on November 17 decided to deliver the verdict in Ayodya dispute at 10.30 am on Saturday which is not a working day for the Supreme Court. This is ...

How partnerships and collaborations could enhance teacher training

Monica Malhotra Kandhari, Managing Director, MBD Group shares her views on public private partnership and collaborations in education sector. She supports her propositions with her organisations success stories....

Fixed Test centers would facelift level of WTC in India

The venues for the test matches in India should be fixed so that World Test Championship matches remain fair....

Videos

Latest News

Pentagon's Esper wants Turkey "back in the fold"

U .S. Defense Secretary Mark Esper said on Wednesday it was important to bring Turkey back in the fold as he renewed warnings that Ankara appeared to be drifting away from NATO with this years arms deal with Russia and its incursion into Sy...

UPDATE 1-Pentagon chief open to military adjustments to support N.Korea diplomacy

Adds quotes, details on military cost-sharing By Phil StewartJOINT BASE LEWIS-MCCHORD, Washington, Nov 13 Reuters - U .S. Defense Secretary Mark Esper said on Wednesday he was open to new alterations in U.S. military activity on the Korean ...

Facebook nixes billions of fake accounts

Facebook on Wednesday said it has nixed 5.4 billion fake accounts already this year, in a sign of a persistent battle on social media against manipulation and disinformation. We have improved our ability to detect and block attempts to crea...

CORRECTED-Self-taught violin maker from North Macedonia wins international fame

Svetozar Bogdanovski built his first violin 35 years ago for his son Kostadin, then aged seven, who had expressed interest in taking lessons.Today Bogdanovskis violins are priced at 60,000 euros 67,000 apiece and are sold worldwide, while K...

Give Feedback