Address

Precise Investors

Monday, July 4, 2022
Trading

Dollar down as central banks in focus

Dollar down

The U.S. Dollar Index that tracks the greenback against a basket of other currencies fell 0.34% to 104.35

The dollar was down on Tuesday morning in Asia as investors are keeping an eye on posturing from major central banks to curb inflation.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies fell 0.34% to 104.35 by 0452 GMT.

The USD/JPY pair inched up 0.02% to 135.10, hovering near a 24-year low versus the dollar.

Japanese Finance Minister Shunichi Suzuki said earlier on Tuesday that he was concerned about the recent sharp yen weakening and would appropriately respond to exchange market moves if necessary.

The AUD/USD pair was up 0.32% to 0.6970, and the NZD/USD pair stabilized at 0.6334. The Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated Tuesday that further interest rate hikes likely loom.

As we chart our way back to 2 to 3% inflation, Australians should be prepared for more interest rate increases, Lowe warned.

The level of interest rates is still very low for an economy with low unemployment and that is experiencing high inflation, he said.

The USD/CNY pair inched down 0.06% to 6.6885, while GBP/USD pair edged up 0.13% to 1.2267. China saw COVID-19 flare-up in cities such as Shenzhen, sparking worries about the second-largest country’s uncertain recovery path.

Major central banks took actions to tame inflation and raise interest rates, adding to investors’ concerns about slowing economic growth.

St. Louis Fed President James Bullard warned that U.S. inflation expectations could ‘become unmoored without credible Fed action,’ while former Treasury Secretary Lawrence Summers suggested that to counter price pressures, the U.S. jobless rate would need to rise above 5% for a sustained period.

In Europe, European Central Bank President Christine Lagarde said that officials intend to hike interest rates in July and September despite growing concerns over financial-market tensions.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply