Left Menu
Development News Edition

FOREX-Dollar set for weekly gain before Fed meeting

Reuters | Updated: 14-06-2019 06:18 IST | Created: 14-06-2019 06:14 IST
FOREX-Dollar set for weekly gain before Fed meeting
Image Credit: Pixabay

The dollar held steady early in Asia on Friday, and was set ot show a weekly rise as investor focus turned to next week's Federal Reserve meeting for cues on a possible interest rate cut in light of rising risks to trade and global growth. The dollar index against a basket of six rivals was basically unchanged at 97.001, and on track for a near 0.5% gain this week. The index had touched an 11-week low of 96.459 last Friday.

The Federal Open Market Committee's (FOMC) two-day policy meeting is set to begin on Tuesday. With trade tensions rising, U.S. growth slowing and hiring in May declining, markets have priced in at least two rate cuts by the end of 2019. There was only an 11.3% expectation on Thursday that U.S. interest rates will be at current levels in July of this year, compared to 74.1% a month ago, according to the CME Group's FedWatch tool.

"Ahead of the FOMC meeting, people are expecting dovish comments from the Fed, which is weighing on the dollar in general," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. "However, other currencies like euro and sterling are weak and their weakness is helping the strength of the dollar," he said.

Investors' attention on Friday will also be on U.S. retail sales data due later in the day for insights into the state of domestic demand in the world's biggest economy. Against the yen, the dollar dipped 0.05% to 108.34 yen. The yen showed little reaction to the latest round of trade negotiations between Tokyo and Washington on Thursday.

Japan and the United States deepened their understanding over each other's position on trade and will continue discussions, Japan's economy minister Toshimitsu Motegi said after meeting with U.S. Trade Representative Robert Lighthizer. Motegi said the two would probably meet again ahead of the G20 summit meeting in Osaka, Japan late this month.

The euro edged up 0.03% to $1.1280, holding up after falling during the past two sessions, though it was still set for a weekly loss of 0.44%. Elsewhere, the Australian dollar was a shade lower at $0.6913, staying within reach of this month's low of $0.6901 touched on Thursday.

Oil futures dipped in early trading on Friday, having risen sharply on Thursday following attacks on two tankers near Iran and the Strait of Hormuz, a key passage for seaborne oil cargoes. Mizuho's Yamamoto said rising oil prices resulting from geopolitical tension in the Middle East could create a drag on the dollar, adding that higher crude prices were not necessarily bad for the global economy.


TRENDING

OPINION / BLOG / INTERVIEW

Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

Videos

Latest News

Punjab CM expresses grief over death of Army man in road accident

Punjab Chief Minister Captain Amarinder Singh on Friday expressed grief over the demise of sapper who died after his military vehicle fell into the Drass River a few days ago.Sorry to learn of the unfortunate demise of Sapper Palwinder Sing...

Mathura temples to be closed for weekend owing to lockdown

Owing to the two-day lockdown imposed by the Uttar Pradesh government to contain the spread of coronavirus, all temples here will remain closed for devotees on both the days, officials said. All the temples including Bhagwat Bhavan, based a...

Top 5 pvt banks stare at NPAs doubling to 5% in FY21

Top five private sector banks may see their slippages double to 5 per cent this fiscal due to the poor loan offtake and the moratorium-driven contraction in net interest margins, warns a report. These five banks--HDFC Bank, ICICI Bank, Axis...

Belarus leader, jabbing at private sector opponents before election, demands higher minimum wage

Belarus leader Alexander Lukashenko, who aims to extend his 26-year rule in a presidential election next month, said on Friday that private firms should pay a higher minimum wage - an apparent strike at his opponents in the non-state sector...

Give Feedback