By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Forex > Dollar adrift as traders assess Fed options; Aussie buoyant
Forex

Dollar adrift as traders assess Fed options; Aussie buoyant

News Room
Last updated: 2023/06/07 at 4:23 AM
By News Room
Share
4 Min Read
SHARE

By Rae Wee

SINGAPORE (Reuters) – The dollar edged lower on Wednesday as traders assessed the odds of a rate hike by the Federal Reserve next week, while the scaled a fresh three-week high in the wake of a rate increase and a decidedly hawkish stance by its central bank .

The Australian dollar peaked at $0.6690 in early Asia trade, its highest since mid-May, buoyed by lingering effects of the Reserve Bank of Australia’s (RBA) quarter-point interest rate increase to an 11-year high on Tuesday.

The decision and the RBA’s hawkish policy statement had sent the Aussie rising 0.8% in the previous session, with governor Philip Lowe warning of more tightening on the cards because inflation was still too high.

“The cash rate is now 4.1%, which we think is in a deeply restrictive territory, so that obviously means that the risk of a hard landing in the Australian economy has increased,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia (OTC:).

In a speech on Wednesday, Lowe reiterated that some further tightening may still be required to bring inflation to heel, though that would depend on how the economy and inflation evolve.

In the broader currency market, the U.S. dollar dipped in early Asia trade, as traders pared back their expectations of a rate hike at next week’s FOMC meeting.

Against the greenback, sterling rose 0.08% to $1.2432, while the gained 0.08% to $0.6084.

Money markets are pricing in a roughly 19% chance that the U.S. central bank will raise rates by 25 basis points next week, compared to an over 60% chance a week ago, according to the CME FedWatch tool.

Data out last week showed that the U.S. services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, a welcome sign for the Fed in its fight against inflation.

“We don’t think the FOMC will hike next week … but risks again are skewed to the upside,” said Kong.

The slipped 0.03% to 104.05, while the euro rose 0.07% to $1.0698.

Euro zone consumers lowered their inflation expectations, a European Central Bank survey showed, a relief for policymakers after an unexpected surge a month earlier.

Against the Japanese yen, the greenback slipped 0.27% to 139.26.

Elsewhere, the Turkish lira slid nearly 2% to a fresh record low of 21.99 per U.S. dollar, while the Canadian dollar rose to a fresh one-month high of C$1.3388 to the greenback ahead of an interest rate decision later on Wednesday.

CRYPTO SHAKEOUT

In the cryptoverse, bitcoin, the world’s biggest cryptocurrency, was last marginally higher at $27,273, after jumping nearly 6% on Tuesday.

The U.S. Securities and Exchange Commission (SEC) on Tuesday sued Coinbase (NASDAQ:), accusing the largest U.S. cryptocurrency platform of operating illegally because it failed to register as an exchange, a move which came just a day after the regulators sued Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao.

” is trading higher … on a flight to the quality end of crypto,” said Tony Sycamore, a market analyst at IG Markets.

Binance’s BNB token was up 0.45% at $283.13, having plunged 9.2% on Monday.

Read the full article here

News Room June 7, 2023 June 7, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
BYD sells more electric vehicles in Europe than Tesla for first time

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Investors ask ‘what next’ as the American fever breaks

Stay informed with free updatesSimply sign up to the US equities myFT…

Rio Tinto chief Jakob Stausholm to step down

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Nestlé boss says his predecessor ‘weakened the fabric’ of the company

Nestlé chief executive Laurent Freixe said his predecessor’s forays into new product…

Telegram jumps to $540mn profit despite founder facing legal peril

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Forex

Thailand’s weakening baht not all bad for economy – PM

By News Room
Forex

Sterling hits multi-month low, Fed holds rates steady amid inflation concerns

By News Room
Forex

Dollar index on verge of forming bullish ‘golden cross’ – BofA

By News Room
Forex

Japan warns against post-Fed yen slide

By News Room
Forex

Asian currencies stumble amid rising U.S. dollar and hawkish Federal Reserve stance

By News Room
Forex

Asian currencies under pressure due to Federal Reserve’s stance, says HSBC

By News Room
Forex

Dollar rallies, yen under pressure ahead of BOJ rate decision

By News Room
Forex

Gambia’s dalasi remains Africa’s strongest currency amid tourism and remittance inflows

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?