AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

LONDON: The dollar held at a one-week high on Tuesday as doubts over the speed and size of US stimulus discouraged risk-taking in currency markets, with the Chinese yuan the only notable exception. London trading had a cautious tone after a turbulent Asian session with currencies including the Australian dollar and the euro under selling pressure before this week’s Federal Reserve policy meeting.

“FX markets are generally risk-off today with the dollar higher, but the Chinese yuan is among the only currencies in emerging markets holding firm,” said Kenneth Broux, a strategist at Societe Generale in London.

Against a basket of other currencies, the dollar rose 0.2% to 90.65, its highest since Jan. 20. It has strengthened 1.6% in three weeks as US Treasury yields rose, after a 6% drop between September and January.

Riskier currencies, including the Australian dollar and the British pound, led losers as some traders unwound large short dollar bets. Short dollar positions had hit their highest in almost 10 years, data last week showed.

The euro was also weighed down by early signals that the economy may not rebound as strongly this year as predicted. Germany’s Ifo business climate indicator undershot expectations on Monday and an economic surprise index in Europe is near six-week lows.

The Chinese yuan was the rare outperformer against the dollar, even as a senior policymaker warned of debt risks. China’s monetary policy will continue to support economic growth and the central bank will watch debt and non-performing loan risks, central bank Governor Yi Gang said.

US Senate Majority Leader Chuck Schumer said Democrats may try to pass much of President Joe Biden’s $1.9 trillion spending package with a majority vote, but it is not clear if they have the numbers to override Republican objections. Few if any changes are expected to the Fed’s policy statement on Wednesday after its two-day meeting and no new economic forecasts are scheduled to be released.

The euro, which fell on Monday after the Ifo survey showed German business morale slumping, is also trading in a range between support around $1.2050 and resistance at $1.2215. It slipped 0.2% to $1.2126.

Elsewhere, emerging-market currencies remained under pressure, with the Brazilian real and the Mexican peso stabilising after a selloff in the past 48 hours.

Comments

Comments are closed.