Dollar Down, Investors Digest Data and Wait for Fed Taper Clues By Investing.com
By Gina Lee
Investing.com – The dollar was down on Thursday morning in Asia, moving towards the middle of a range that it has stuck to for the past month. Investors now look to the U.S. Federal Reserve’s policy decision, due to be handed down next week, for further clues on when the central bank will begin asset tapering.
The that tracks the greenback against a basket of other currencies inched down 0.05% to 92.485 by 11:57 PM ET (3:57 AM GMT).
The pair inched down 0.05% to 109.31.
The pair edged down 0.14% to 0.7324. released earlier in the day showed that the contracted by 146,300, while the contracted by 68,000, in August. The was 4.5%.
The pair edged up 0.15% to 0.7114, with New Zealand’s GDP growing a better than expected 2.8% and 17.4% in the second quarter.
The pair inched up 0.04% to 6.4347 while the pair inched down 0.02% to 1.3834.
We’re still waiting to hear from the Fed on Monday. That remains our main focus. I do not think the dollar is going to go too far in either direction before that,” Barclays (LON:) senior FX strategist Shinichiro Kadota told Reuters.
“The Fed’s two-day policy meeting ending Sep. 22 should provide some clarity on the outlook for both asset tapering and eventual interest rate hikes.”
The yen’s strong performance on Wednesday may have been helped by foreign flows into Japanese stocks with the reaching a multi-decade high this week, as well as covering of short positions, said
Japan also released trade data earlier in the day showed that grew 26.2% year-on-year and grew 44.7% year-on-year in August. The was at a deficit of JPY635.4 billion ($5.8 billion).
The crown of Norway rose to $8.5710 per $1, moving closer toward its more than 2-month-high of 8.5598, which was reached overnight due to rising oil prices. Also, the crown reached its highest level since June against the euro. 25 at 10.1119.
Pepperstone research head Chris Weston wrote in a note, “EUR-NOK has been one of my preferred exposures to play rising crude prices. We’re also seeing a bearish trend.”
“If and futures are headed for their respective double tops then EUR-NOK is going one way in my view.”
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