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Dollar Down, Less-Hawkish-Than Expected Fed Minutes Improves Sentiment -Breaking


© Reuters.

By Gina Lee – The dollar was down on Thursday morning in Asia, with the safe-haven asset remaining near a one-month low. The confirmation that there was potential for a rate hike pause after two further half-point increases in June 2022 and July 2022 increased investor risk appetite has helped to improve investors’ confidence.

By 12:39 PM ET (04:39 GMT), the that monitors the greenback against other currencies fell 0.06% to 101.83

It edged up by 0.11%, to 127.44

Both the pair fell 0.18 to 0.7080, and both were down 0.15 to 0.6464

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Both the pair rose 0.53%, to 6.7285, and the pair rose 0.09%, to 1.2576.

The dollar index consolidated around the 102.03 mark after Wednesday’s Fed minutes saw a short-lived bounce immediately afterward. However, investors stated that there weren’t many surprises during the Asian session. Overnight, U.S. stocks rose while the long-term Treasury yields remained steady.

Raphael Bostic, President of Atlanta Federal Reserve had suggested that in September 2022, a pause would be an appropriate course of action to assess the economic effects following the two additional 50-basis point hikes in June/ July.

“A soft dollar index (DXY) backdrop is forming, with risk appetite firming,” Westpac strategists said in a note.

The note stated that it was still premature to declare a DXY long-term peak. DXY can range for a while, but retracements at the 101 level would be worth a purchase.

In mid-May the dollar index topped 105, a peak that was nearly two decades old. However, investors began to reduce their tightening bets due to signs that Fed aggressive action may already have contributed to slowering economic growth. The yields on U.S. Treasury bonds also dropped from their multi-year peak.

Although the Japanese yen was slightly higher than the euro, it has remained steady at 2.76%. The euro gained 0.4% to $1.06955. This was due to Christine Lagarde (European Central Bank president)’s remarks earlier this week, which indicated that there would be an end of negative interest rates for the eurozone in third quarter. The single currency reached a record $1.0748 for the first month.

After Wednesday’s outcome of the hawkish Reserve Bank of New Zealand meeting, where it had risen to $0.6514 for three weeks, most of New Zealand dollars lost its gains.

The rate of interest was hiked to 1.75% in Asia Pacific by the.