Left Menu
Development News Edition

FOREX-Dollar, yen supported as caution prevails on mixed trade signals


FOREX-Dollar, yen supported as caution prevails on mixed trade signals
Image Credit: Pixabay

The dollar and the safe-haven yen found support on Wednesday as a lack of clarity on U.S.-China trade talks kept investors cautious ahead of the release of minutes from the U.S. Federal Reserve's last policy meeting.

Moves were slight as jaded traders again weighed mixed messages on trade, with more upbeat reports offset by U.S. President Donald Trump delivering yet another warning of more tariffs if talks fail. After falling overnight, the greenback rose a little on the Australian dollar to $0.6824 and on the New Zealand dollar to $0.6426.

It was marginally higher against the euro at $1.1077 and against a basket of currencies, the dollar last traded a little stronger at 97.862. The yen, regarded as a safe-haven by virtue of Japan's status as the world's biggest creditor, touched 108.37 per dollar, its highest since Friday.

"It's a very slightly risk-averse day," said Westpac FX analyst Imre Spiezer. "There's a slightly cautious tone and mixed messages from the trade war negotiations." The United States and China have been locked in tit-for-tat tariff hikes that have dented the global economy.

Hopes for progress on the dispute had risen overnight when Bloomberg reported that negotiations, which failed in May, would be considered a baseline in deciding what U.S. tariffs on China would be rolled back. However, speaking at a cabinet meeting at the White House overnight, Trump noted that China was "moving along," but any deal would need to be one he liked.

"If we don't make a deal with China, I'll just raise the tariffs even higher," he told a room filled with senior U.S. officials. The U.S. Senate's unanimous passage of a bill aimed at protecting human rights in Hong Kong amid a crackdown on demonstrations was also seen likely to raise tensions between the negotiating parties.

The Chinese yuan - the currency most sensitive to the trade dispute - dropped to a two-week low of 7.0335 per dollar in offshore trade early in the Asian day. Traders and analysts also widely expect China will cut its new benchmark lending rate when it is fixed at 0130 GMT.

Elsewhere, the British pound fell slightly overnight after an inconclusive election debate between Conservative Prime Minister Boris Johnson, who leads in the polls, and Labour leader Jeremy Corbyn. It was steady at $1.2919 in Asian trade.

The release of the Fed minutes from October are the next major scheduled event for markets, with investors looking for insight into the reasoning for last month's rate cut. "In particular, clues for whether October was a 'hawkish cut,' with a high bar for any further easing, or a 'dovish pause' with a bias for more easing...will be sought," said Vishnu Varathan, head of economics and strategy for Mizuho Bank in Singapore.

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


TRENDING

OPINION/BLOG/INTERVIEW

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

Videos

Latest News

Govt should work with regulators to fix problems in Karvy,

The Congress in Rajya Sabha on Tuesday said steps being taken by multiple regulatory authorities in cases related to alleged fraud at Karvy Stock Broking KSBL and DHFL could be legally questionable and the government should work with regula...

Pak says Citizenship Bill reflects India's malafide intent to interfere in neighbouring countries

Condemning as regressive and discriminatory the Citizenship Amendment Bill, Pakistan on Tuesday said the proposed legislation reflects Indias malafide intent to interfere in the affairs of neighbouring countries based on religion. The Lok S...

US Commission on International Religious Freedom's statement on Citizenship (Amendment) Bill neither accurate nor warranted: MEA.

US Commission on International Religious Freedoms statement on Citizenship Amendment Bill neither accurate nor warranted MEA....

NHL roundup: Flames stretch streak to 5, end Avs' at 6

Sean Monahan scored in overtime and the Calgary Flames overcame blowing a two-goal lead in the third period to defeat the Colorado Avalanche 5-4 in Denver on Monday night. Andrew Mangiapane and Michael Frolik had goals in the first 139 of t...

Give Feedback