International Releases is a platform that provides comprehensive coverage of the latest news and developments from around the world. From politics and business to entertainment and culture, International Releases delivers information on the stories that matter most.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Home Finance US dollar gains broadly as risk sentiment turns sour after poor Chinese data

US dollar gains broadly as risk sentiment turns sour after poor Chinese data

by Jessica Weisman-Pitts
2023 08 08T013122Z 1 LYNXMPEJ7701D RTROPTP 4 USA BIDEN TAXES WEALTHY

US dollar gains broadly as risk sentiment turns sour after poor Chinese data

By Gertrude Chavez-Dreyfuss and Samuel Indyk

NEW YORK/LONDON (Reuters) – The U.S. dollar firmed across the board on Tuesday, garnering safe-haven bids, after a disappointing set of Chinese trade figures hurt the yuan and the Australian and New Zealand currencies, with European risk-sensitive currencies also sliding on the worsening global outlook.

The dollar index rose 0.6% to 102.69, moving further away from Friday’s one-week low in the wake of a mixed U.S. jobs report, which pointed to a cooling but still resilient labour market. The greenback was on track for its best daily gain in about two weeks.

China’s imports and exports fell much faster than expected in July, data on Tuesday showed, with imports down 12.4% from a year earlier while exports contracted by 14.5%, in another sign of the country’s faltering economic recovery and subdued global demand.

“There’s an element of risk aversion. Pretty clearly, the data overnight was not so good, with very sluggish export data across Asia,” said Brad Bechtel, global head of foreign exchange, at Jefferies in New York.

“We’re definitely at a place in the dollar smile where U.S. fundamentals are outperforming the rest of the world. And generally it’s an environment for the dollar to sustain its rally,” he added.

The offshore yuan fell to a five-week low of 7.2514 per dollar, and was last down 0.6% at 7.246. Its onshore counterpart hit a three-week low of 7.2225 per dollar.

The Aussie, a proxy for risk-sensitive currencies that is directly impacted by the yuan, weakened to US$0.6497 against the U.S. currency, its lowest since June 1. It last traded down 0.9% at US$0.6510. The New Zealand dollar dropped to US$0.6035, its weakest level in two months and was last down 1% at US$0.6041.

While currency moves had been minimal early in the Asian day, the greenback extended its gains in Europe and North America, as risk sentiment turned fragile and Wall Street shares sold off.

In other currencies, sterling fell 0.5% to $1.2718, after a survey showed British retailers in July logged their slowest sales growth in 11 months.

The euro dropped 0.5% to $1.0949, while the risk-sensitive Swedish and Norwegian crowns both tumbled against the dollar.

“Both SEK and NOK have had some good sessions, when they were supported by positive risk sentiment, but are for the opposite reason slightly on the defensive,” said Jens Nærvig Pedersen, director at Danske Bank.

The U.S. dollar rose 0.4% to 143.095 yen.

Data on Tuesday showed that Japanese real wages fell for a 15th straight month in June on relentless price hikes, but nominal pay growth remained robust amid rising salaries for high-income workers and a broadening labour crunch.

All eyes are now on Thursday’s U.S. inflation data, where expectations are for core consumer prices in the United States to have risen 4.8% on an annual basis in July.

China will report July inflation as well on Wednesday, with traders on the lookout for further signs of deflation.

========================================================

Currency bid prices at 10:52AM (1452 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 102.6400 102.0800 +0.56% -0.821% +102.8000 +102.0700

Euro/Dollar $1.0946 $1.1003 -0.52% +2.16% +$1.1012 +$1.0930

Dollar/Yen 143.0950 142.4600 +0.45% +9.15% +143.4300 +142.4200

Euro/Yen 156.63 156.75 -0.08% +11.65% +157.7400 +156.3600

Dollar/Swiss 0.8760 0.8729 +0.39% -5.23% +0.8782 +0.8721

Sterling/Dollar $1.2719 $1.2785 -0.52% +5.17% +$1.2785 +$1.2685

Dollar/Canadian 1.3475 1.3370 +0.79% -0.54% +1.3502 +1.3369

Aussie/Dollar $0.6511 $0.6574 -0.95% -4.47% +$0.6576 +$0.6497

Euro/Swiss 0.9587 0.9603 -0.17% -3.09% +0.9609 +0.9588

Euro/Sterling 0.8604 0.8602 +0.02% -2.70% +0.8625 +0.8604

NZ $0.6046 $0.6107 -1.01% -4.79% +$0.6110 +$0.6035

Dollar/Dollar

Dollar/Norway 10.3070 10.1520 +1.80% +5.31% +10.3410 +10.1670

Euro/Norway 11.2860 11.1631 +1.10% +7.53% +11.3165 +11.1588

Dollar/Sweden 10.7255 10.5738 +0.89% +3.06% +10.7535 +10.5753

Euro/Sweden 11.7423 11.6382 +0.89% +5.31% +11.7637 +11.6350

 

(Reporting by Gertrude Chavez-Dreyfuss in New York and Samuel Indyk in London; Additional reporting by Rae Wee in Singapore; Editing by Gareth Jones, Jason Neely and Sharon Singleton)

Recent Post