ANL 34.32 Decreased By ▼ -0.20 (-0.58%)
ASC 14.85 Decreased By ▼ -0.31 (-2.04%)
ASL 24.50 Decreased By ▼ -0.33 (-1.33%)
AVN 90.24 Decreased By ▼ -4.76 (-5.01%)
BOP 7.79 Decreased By ▼ -0.08 (-1.02%)
BYCO 10.05 Decreased By ▼ -0.26 (-2.52%)
DGKC 124.20 Decreased By ▼ -2.40 (-1.9%)
EPCL 56.30 Decreased By ▼ -0.86 (-1.5%)
FCCL 24.31 Decreased By ▼ -0.19 (-0.78%)
FFBL 27.60 Decreased By ▼ -0.36 (-1.29%)
FFL 16.05 Increased By ▲ 0.01 (0.06%)
HASCOL 9.74 Decreased By ▼ -0.28 (-2.79%)
HUBC 80.00 No Change ▼ 0.00 (0%)
HUMNL 6.44 Decreased By ▼ -0.01 (-0.16%)
JSCL 20.50 Increased By ▲ 0.09 (0.44%)
KAPCO 40.21 Decreased By ▼ -0.73 (-1.78%)
KEL 3.85 Decreased By ▼ -0.02 (-0.52%)
LOTCHEM 16.25 Decreased By ▼ -0.99 (-5.74%)
MLCF 46.60 Decreased By ▼ -0.31 (-0.66%)
PAEL 35.10 Decreased By ▼ -1.07 (-2.96%)
PIBTL 10.33 Decreased By ▼ -0.16 (-1.53%)
POWER 9.25 Decreased By ▼ -0.10 (-1.07%)
PPL 85.50 Decreased By ▼ -0.24 (-0.28%)
PRL 25.01 Decreased By ▼ -0.70 (-2.72%)
PTC 9.55 Increased By ▲ 0.10 (1.06%)
SILK 1.24 Increased By ▲ 0.07 (5.98%)
SNGP 38.82 Decreased By ▼ -0.54 (-1.37%)
TRG 167.40 Increased By ▲ 7.79 (4.88%)
UNITY 30.65 Decreased By ▼ -0.10 (-0.33%)
WTL 1.53 Increased By ▲ 0.10 (6.99%)
BR100 4,820 Decreased By ▼ -31.91 (-0.66%)
BR30 25,669 Decreased By ▼ -2.82 (-0.01%)
KSE100 44,978 Decreased By ▼ -208.43 (-0.46%)
KSE30 18,443 Decreased By ▼ -42.02 (-0.23%)

Coronavirus
VERY HIGH
Pakistan Deaths
15,619
11824hr
Pakistan Cases
729,920
431824hr
Sindh
269,474
Punjab
252,974
Balochistan
20,397
Islamabad
66,983
KPK
100,275

NEW YORK: The US dollar was modestly lower on Monday on weak economic data, but remained near the two-week high set earlier in the session as investors reconsidered how dovish the Federal Reserve is likely to be at this week's policy meeting.

Broader currency markets were quiet, as traders hesitated to put on large positions before the Fed's two-day meeting, a meeting of European Central Bank policymakers in Portugal and the Bank of England's interest rate decision on Thursday.

"It wouldn't surprise us to see a bit of volatility going into these meeting but ultimately you're going to see people taking more of a wait-and see approach," said Charles Tomes, portfolio manager at Manulife Asset Management.

The New York Federal Reserve said on Monday its gauge of business growth in New York state posted a record fall this month to its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity.

The weak data did not change the low expectations the Fed will cut rates at its meeting this week.

Expectations of a rate cut at the Fed's June 18-19 meeting have fallen to a probability of 19.2pc, according to CME Group's FedWatch tool. But bets for monetary easing at its July meeting remain elevated, with markets pricing in a 70.1% chance of a 25 basis point cut.

Slow jobs growth in May, dovish comments from Federal Open Market Committee members and a slate of weak inflation data last week pushed rate-hike expectations up.

"It's probably warranted that you need somewhat of a rate cut priced in.

We think the pendulum has swung a little too far, too fast in the short term where the market has gotten ahead of itself pricing in cuts," said Tomes.

The dollar index hit a two-week high of 97.603 on Monday but was last 0.17pc lower at 97.407.

The euro was 0.28pc higher at $1.124 as investors awaited policymakers speeches at the European Central Bank meeting in Sintra, Portugal, and Tuesday's euro zone inflation data.

Fears that a protracted Sino-US standoff could tip the global economy into recession have prompted rate cuts in India, Philippines, Malaysia, New Zealand and Australia. The ECB has also signaled the prospect of more stimulus.

Against the yen, the dollar was slightly stronger, last up 0.02pc to 108.58.

Sterling slid as low as $1.257, its weakest since January and heading for a 2019 low. Investors worry Boris Johnson, the front-runner to replace Prime Minister Theresa May, could put Britain on a path towards a no-deal Brexit.

Copyright Reuters, 2019