AVN 64.95 Decreased By ▼ -0.01 (-0.02%)
BAFL 30.30 Increased By ▲ 0.05 (0.17%)
BOP 4.69 Increased By ▲ 0.05 (1.08%)
CNERGY 3.90 Increased By ▲ 0.02 (0.52%)
DFML 13.36 Decreased By ▼ -0.19 (-1.4%)
DGKC 42.45 Increased By ▲ 0.25 (0.59%)
EPCL 48.00 Increased By ▲ 2.19 (4.78%)
FCCL 11.35 Decreased By ▼ -0.06 (-0.53%)
FFL 5.15 Decreased By ▼ -0.02 (-0.39%)
FLYNG 5.83 Increased By ▲ 0.03 (0.52%)
GGL 9.95 Decreased By ▼ -0.09 (-0.9%)
HUBC 63.68 Increased By ▲ 0.38 (0.6%)
HUMNL 5.76 Increased By ▲ 0.01 (0.17%)
KAPCO 27.75 Decreased By ▼ -0.08 (-0.29%)
KEL 2.21 Increased By ▲ 0.08 (3.76%)
LOTCHEM 25.08 Decreased By ▼ -0.25 (-0.99%)
MLCF 21.55 Decreased By ▼ -0.02 (-0.09%)
NETSOL 84.00 Decreased By ▼ -0.99 (-1.16%)
OGDC 87.90 Increased By ▲ 1.67 (1.94%)
PAEL 10.93 Increased By ▲ 0.01 (0.09%)
PIBTL 4.18 Decreased By ▼ -0.05 (-1.18%)
PPL 78.89 Increased By ▲ 0.37 (0.47%)
PRL 13.70 Increased By ▲ 0.08 (0.59%)
SILK 0.89 No Change ▼ 0.00 (0%)
SNGP 41.40 Increased By ▲ 0.54 (1.32%)
TELE 6.03 Increased By ▲ 0.03 (0.5%)
TPLP 15.87 Decreased By ▼ -0.13 (-0.81%)
TRG 111.41 Decreased By ▼ -0.29 (-0.26%)
UNITY 13.90 Decreased By ▼ -0.09 (-0.64%)
WTL 1.16 Increased By ▲ 0.03 (2.65%)
BR100 4,043 Increased By 17 (0.42%)
BR30 14,504 Increased By 101.4 (0.7%)
KSE100 40,586 Increased By 135.5 (0.33%)
KSE30 15,171 Increased By 60.7 (0.4%)
Follow us

SINGAPORE: The dollar stood close to a three-month low and was on track for a weekly loss on Friday, as the prospect of the Federal Reserve slowing monetary policy tightening as soon as December dominated investors’ minds and kept the mood buoyant.

Trading was thin overnight due to the Thanksgiving holiday in the United States, though most currencies extended their gains against a softer greenback before paring them slightly in early Asia trade.

Sterling rose more than 0.5% overnight and last stood at $1.21125, close to its over three-month high of $1.2153 hit in the previous session and on track for a nearly 2% weekly gain.

The Japanese yen jumped roughly 0.7% overnight, and last bought 138.60 per dollar.

Minutes from the Fed’s November meeting released earlier this week showed that a “substantial majority” of policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes – remarks that sent the greenback tumbling.

The Fed’s aggressive interest rate hikes and market expectations of how high the central bank could take them has been a huge driver of the dollar’s 10% surge this year.

Dollar down as US data released

“We’ve still got the third successive day of positive risk sentiment… I think that is keeping the U.S. dollar subdued pretty much across the board,” said Ray Attrill, head of FX strategy at National Australia Bank.

Against a basket of currencies, the U.S. dollar index stood at 105.94, testing its three-month trough of 105.30 hit last week. It was headed for a weekly loss of nearly 1%.

Also aiding risk sentiment slightly was a survey that showed that German business morale rose further than expected in November.

European Central Bank (ECB) policymakers fear that inflation may be getting entrenched in the euro zone, accounts of its October meeting showed overnight. However, markets are now expecting a more modest, 50 bp move at the December meeting.

The euro was 0.06% lower at $1.04045, but remained close to $1.0481, its highest level in over four months hit last week.

“We have the euro zone inflation numbers next week, so I think they are going to be a big test of market pricing … were we to get another upside surprise on that, then I think that would bring 75 bp back on the agenda,” said Attrill.

The Aussie fell 0.17% to $0.6753, after rising more than 0.4% overnight. The kiwi slid 0.19% to $0.6252, but that was not far off its three-month peak hit in the previous session.

The New Zealand dollar was headed for a weekly gain of more than 1.5%, aided by the Reserve Bank of New Zealand’s 75 bp rate hike earlier in the week and its hawkish rate outlook.

Over in China, markets were also closely watching an impending cut in banks’ reserve requirement ratio (RRR).

China will use timely cuts in banks’ RRR, alongside other monetary policy tools, to keep liquidity reasonably ample, state media quoted a cabinet meeting as saying.

“We believe it’s likely the PBoC (People’s Bank of China) may cut RRR by 25 bp for most banks in the next couple of weeks (or even days),” said analysts at Nomura.

“That being said, the RRR is likely to only have a limited positive impact, as we believe the real hurdle for the economy lies in local officials’ more zealous implementation of Covid restrictions rather than insufficient loanable funds.”

The Chinese offshore yuan was last 0.1% lower at 7.1759 per dollar.

Comments

Comments are closed.

Dollar headed for weekly loss as investors brace for slower Fed hikes

Intra-day update: rupee crosses 265 against US dollar

SBP denies USD rate capping caused loss

Import of used tractors: ECC asks MoC, SBP to rethink

IMF conditionalities: Govt raises fuel prices in a gesture of compliance

Imran Khan censures govt for ‘massive’ fuel hike

Oil falls ahead of OPEC+, US Federal Reserve meetings

Dar says fiscal discipline has to be imposed

Decline in cess collection lands body in trouble: Food ministry seeks Rs666.64m grant for cotton committee

Termination of SEL’s LoS: PPIB seeks comments from CPPA-G, NTDC

Hike to fuel inflation: Tarin