FOREX Dollar firm vs Aussie, euro on heightened recession worries

Australian {dollars} are seen in an illustration picture February 8, 2018. REUTERS/Daniel Munoz

SINGAPORE/TOKYO/HONG KONG, Aug 16 (Reuters) – The safe-haven U.S. greenback hovered close to a one-week excessive on Tuesday whereas the Aussie, euro and Chinese language yuan remained underneath stress as weak international financial knowledge regnited recession fears.

The greenback index , which measures the buck in opposition to six main friends, held regular at 106.51, slightly below the earlier session’s peak of 106.55, the strongest since Monday of final week.

The euro , probably the most closely weighted forex within the greenback index, was little modified at $1.0158 after earlier dipping to the weakest since Aug. 5 at 1.0154.

Sterling was 0.1% down at $1.2040, the bottom since Aug. 5.

Towards the yen , a a lot wanted haven forex, the greenback eased 0.09% to 133.19.

The worldwide security bid was pushed by a raft of weak world financial indicators. On Monday, knowledge confirmed U.S. single-family homebuilders’ confidence and New York state manufacturing facility exercise fell in August to their lowest ranges since close to the beginning of the COVID-19 pandemic. learn extra

That adopted surprisingly weak Chinese language exercise knowledge spanning industrial output, retail gross sales and fixed-asset funding as a nascent restoration from draconian COVID-19 lockdowns faltered.

Towards the offshore yuan , the greenback rose 0.07% to six.8174, heading again towards Monday’s excessive of 6.8200, a degree final since in mid-Might.

The Australian greenback sank as little as $0.70005, threatening to drop beneath the psychological 70 cent mark for the primary time since Wednesday.

New Zealand’s kiwi dipped to $0.6349, additionally the bottom since Wednesday.

The Reserve Financial institution of New Zealand is extensively anticipated to lift charges by half a degree once more on Wednesday, with the deal with whether or not policymakers observe the Federal Reserve and Reserve Financial institution of Australia in shifting to a extra data-driven strategy.

“The weak spot within the U.S. and Chinese language economies is often a nasty signal for commodity currencies,” together with Aussie and kiwi, Commonwealth Financial institution of Australia strategist Joseph Capurso wrote in a notice to shoppers.

“The trail of least resistance for NZD is decrease till the Reserve Financial institution of New Zealand’s coverage assembly tomorrow.”

Reporting by Kevin Buckland
Enhancing by Shri Navaratnam

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