Economic news

Dollar steady ahead of Fed minutes, NZ dollar falls after rate cut

2024.10.08 22:00

By Brigid Riley

TOKYO (Reuters) – The dollar drifted sideways on Wednesday, giving some relief to the yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate path outlook for the United States.

The New Zealand dollar slumped to its lowest since Aug. 19 at $0.6096, after the Reserve Bank of New Zealand (RBNZ) cut interest rates by 50 basis points.

The was last down 0.55% at $0.61035.

A majority of economists in a Reuters poll last week had predicted a big half a percentage point cut. The central bank kicked off an easing cycle in August seeking to trim rates from 15-year highs.

The U.S. data calendar this week is relatively light, offering a breather after a strong jobs report on Friday sent the dollar jumping and markets repricing the expected scale of upcoming interest rate reductions.

On Wednesday, investors will get minutes of the Fed’s September meeting, which will show discussions about what at the time had appeared to be a deteriorating labour market that ended with all but one policymaker agreeing to a 50-basis point cut.

But bets for another jumbo cut in November have been taken off the table after the latest nonfarm payroll data indicated a more resilient picture.

Markets now have about an 85% chance of a quarter basis point reduction priced in, as well as a slim probability the Federal Reserve will leave rates unchanged, the CME FedWatch tool showed.

September Consumer Price Index report on Thursday will the main piece of data this week.

“U.S. inflation data this week and upcoming corporate earnings will be key to sustaining the U.S. dollar rebound and will need to reinforce the US exceptionalism narrative,” analysts at Westpac IQ wrote in a note.

The , which measures the greenback against a basket of currencies, was flat at 102.490, not far from Friday’s seven-week high of 102.69.

With the dollar settling, the euro steadied around $1.0977, while the pound was at $1.3101, close to the more than three-week low of $1.30595 it touched on Monday.

Dollar/yen traded in a narrow range, last hovering around 148.28 yen, after touching a seven-week high of 149.10 on Monday.

Elsewhere, the Australian dollar was licking wounds, having slid on Tuesday to $0.6715, its lowest since Sept. 16, after minutes from the latest meeting of the nation’s central bank came off as dovish. It last traded not far off that low, down 0.08% at $0.67415.

Investors remain focused on China after a volatile day in Chinese and Hong Kong markets in the previous session.

© Reuters. FILE PHOTO: U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Beijing said on Tuesday it was “fully confident” of achieving its full-year growth target but refrained from introducing stronger fiscal steps, disappointing investors who had banked on more support from policymakers to get the economy back on track.

The stabilised around 7.0695 per dollar.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,318.34 0.42%
ethereum
Ethereum (ETH) $ 3,434.21 2.45%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 259.52 1.10%
bnb
BNB (BNB) $ 662.19 3.82%
xrp
XRP (XRP) $ 1.48 7.42%
dogecoin
Dogecoin (DOGE) $ 0.443186 8.35%
usd-coin
USDC (USDC) $ 1.00 0.07%
cardano
Cardano (ADA) $ 1.08 4.13%
staked-ether
Lido Staked Ether (STETH) $ 3,430.51 2.55%
tron
TRON (TRX) $ 0.215102 4.06%
avalanche-2
Avalanche (AVAX) $ 42.57 4.10%
the-open-network
Toncoin (TON) $ 6.48 16.89%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 7.63%
stellar
Stellar (XLM) $ 0.506469 20.86%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,055.93 2.02%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,997.26 0.72%
polkadot
Polkadot (DOT) $ 9.51 36.51%
chainlink
Chainlink (LINK) $ 18.18 7.93%
bitcoin-cash
Bitcoin Cash (BCH) $ 519.02 2.85%
sui
Sui (SUI) $ 3.52 0.96%
weth
WETH (WETH) $ 3,430.62 2.24%
pepe
Pepe (PEPE) $ 0.000021 0.92%
leo-token
LEO Token (LEO) $ 8.64 1.52%
near
NEAR Protocol (NEAR) $ 6.50 5.42%
litecoin
Litecoin (LTC) $ 101.54 6.20%
aptos
Aptos (APT) $ 13.22 5.80%
uniswap
Uniswap (UNI) $ 11.00 9.02%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,612.84 2.38%
hedera-hashgraph
Hedera (HBAR) $ 0.154117 2.94%
internet-computer
Internet Computer (ICP) $ 11.69 0.86%
crypto-com-chain
Cronos (CRO) $ 0.200524 6.28%
usds
USDS (USDS) $ 1.00 1.26%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.590419 13.87%
ethereum-classic
Ethereum Classic (ETC) $ 30.10 1.65%
render-token
Render (RENDER) $ 7.95 4.32%
bittensor
Bittensor (TAO) $ 538.93 3.13%
kaspa
Kaspa (KAS) $ 0.157407 2.70%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.48 11.18%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.12%
bonk
Bonk (BONK) $ 0.000049 0.09%
arbitrum
Arbitrum (ARB) $ 0.888294 6.58%
whitebit
WhiteBIT Coin (WBT) $ 24.80 0.59%
vechain
VeChain (VET) $ 0.043026 12.47%
cosmos
Cosmos Hub (ATOM) $ 8.89 14.67%
dai
Dai (DAI) $ 1.00 0.18%
dogwifcoin
dogwifhat (WIF) $ 3.43 6.34%
filecoin
Filecoin (FIL) $ 5.62 13.16%
mantra-dao
MANTRA (OM) $ 3.69 4.51%
blockstack
Stacks (STX) $ 2.11 5.23%