AIRLINK 60.01 Increased By ▲ 0.31 (0.52%)
BOP 6.30 Increased By ▲ 0.04 (0.64%)
CNERGY 4.34 Increased By ▲ 0.07 (1.64%)
DFML 15.84 Increased By ▲ 0.14 (0.89%)
DGKC 69.60 Increased By ▲ 0.40 (0.58%)
FCCL 18.50 Increased By ▲ 0.15 (0.82%)
FFBL 26.90 Increased By ▲ 0.15 (0.56%)
FFL 9.23 Decreased By ▼ -0.05 (-0.54%)
GGL 10.29 Decreased By ▼ -0.01 (-0.1%)
HBL 116.70 Increased By ▲ 0.80 (0.69%)
HUBC 114.75 Increased By ▲ 0.35 (0.31%)
HUMNL 6.80 No Change ▼ 0.00 (0%)
KEL 4.95 Increased By ▲ 0.06 (1.23%)
KOSM 4.61 Decreased By ▼ -0.04 (-0.86%)
MLCF 38.46 Increased By ▲ 0.07 (0.18%)
OGDC 125.25 Decreased By ▼ -0.05 (-0.04%)
PAEL 21.60 Increased By ▲ 0.04 (0.19%)
PIAA 11.12 Increased By ▲ 0.25 (2.3%)
PIBTL 6.06 Increased By ▲ 0.04 (0.66%)
PPL 113.55 Decreased By ▼ -0.55 (-0.48%)
PRL 28.10 Increased By ▲ 0.20 (0.72%)
PTC 11.01 Increased By ▲ 0.11 (1.01%)
SEARL 50.60 Decreased By ▼ -1.10 (-2.13%)
SNGP 67.40 Decreased By ▼ -0.86 (-1.26%)
SSGC 11.30 Decreased By ▼ -0.12 (-1.05%)
TELE 7.78 Decreased By ▼ -0.02 (-0.26%)
TPLP 11.57 Decreased By ▼ -0.03 (-0.26%)
TRG 73.45 Increased By ▲ 0.58 (0.8%)
UNITY 23.50 Decreased By ▼ -0.05 (-0.21%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,659 Increased By 10.6 (0.16%)
BR30 22,630 Increased By 60.2 (0.27%)
KSE100 64,727 Increased By 148.8 (0.23%)
KSE30 21,949 Increased By 60.1 (0.27%)

SINGAPORE: The dollar stood its ground on Wednesday, though it struggled for further headway despite strong US retail sales data, as traders turned their attention to looming Chinese growth figures and the escalating violence in the Middle East.

A blast at a Gaza hospital dealt a blow to hopes the conflict could be contained.

US President Joe Biden is en route to Tel Aviv. The Israeli shekel fell back to the weaker side of 4-per dollar after a brief bounce overnight.

US yields had shot sharply higher after data showed retail sales increased strongly and more than expected last month, in the latest sign of the economy’s enduring strength. Two-year yields hit a 17-year high at 5.24%.

Yet the dollar, which has moved in lockstep with yields lately, was supported without gaining much.

Some traders pointed to a positive survey of German business morale and a Bloomberg report suggesting the Bank of Japan is likely to revise its inflation forecasts higher as helping the euro and yen lean against any dollar strength.

The euro gained 0.1% overnight and was steady at $1.0570 in Asia on Wednesday. The yen jumped briefly, before falling back to trade steady at 149.75 on Wednesday.

Others suggested the lagging dollar could be a sign its recent run is losing momentum.

Dollar bounces as US retail sales beat expectations

The benchmark 10-year Treasury yield has climbed about 100 basis points since mid July, and the dollar index is up 7% in the same period.

“It’s had a really good run and it’s stalled a bit,” said Westpac analyst Imre Speizer. “Maybe it’s hitting the limits of this stage of the rally, and needs a bit of a correction.”

The dollar index was up less than 0.1% overnight to 106.26.

China’s yuan fell in overnight offshore trade ahead of GDP data due later on Wednesday. The Australian and New Zealand dollars were steady in early trade - though have started moving in opposite directions on interest rate expectations.

On Tuesday data showed inflation had cooled in New Zealand, while the Reserve Bank of Australia struck a surprisingly hawkish tone in meeting minutes – sending the Aussie/kiwi cross sharply higher and through its 50-day moving average.

The Aussie held Tuesday gains to buy $0.6358 on Wednesday.

The kiwi nursed losses at $0.5894.

Comments

200 characters
faizan Oct 18, 2023 10:48pm
Please
thumb_up Recommended (0) reply Reply
faizan Oct 18, 2023 10:49pm
I am Pakistani boy
thumb_up Recommended (0) reply Reply