• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Dollar finds footing as traders await inflation data

September 13, 2021 by David Barret Leave a Comment

September 13, 2021

By Tom Westbrook

SINGAPORE (Reuters) – The dollar began a week full of big economic data on a firm footing, with investors wary of the Federal Reserve beginning its exit from super-supportive policy even as cases of the coronavirus surge.

The greenback closed out its best week in three weeks on Friday, gaining about 0.6% on the euro as it benefited both from safety flows and the policy outlook lifting yields on U.S. Treasuries.

It maintained gains early in the Asia session to hold the common currency at $1.1810. It was also steady at 109.91 Japanese yen, while its strength has for now stymied rallies in the Australian and New Zealand dollars.

In morning trade, the Aussie was marginally firmer at $0.7362, but it has struggled to stay above $0.74. The kiwi was marginally weaker at $0.7115 but has likewise battled to break out of a months-long range despite the Reserve Bank of New Zealand preparing for interest rate hikes.

“A couple of dynamics favour the dollar,” said Rodrigo Catril, senior currency strategist at National Australia Bank in Sydney, particularly risk aversion as even vaccinated countries such as Singapore and Britain log surges in COVID-19 cases.

“Re-opening still faces challenges from the consumer, who is cautious and from bottlenecks which restrict ability for the economy to rebound with some gusto,” he said.

“At the same time rising infections suggest we may still need to reintroduce restrictions of some sort. The other thing is that the Fed continues to signal that tapering is coming.”

U.S. consumer price data on Tuesday is expected to show core inflation easing slightly to 4.2%.

However, with Philadelphia Fed President Patrick Harker, in a Nikkei interview https://ift.tt/3EbU7bh on Monday, joining a chorus of policymakers keen to begin scaling back asset purchases, bond traders seem to think a slowdown won’t be enough to delay tapering much.

Ten-year Treasuries were sold for a third straight week last week – the longest streak since yields lurched higher in February and March – lifting the 10-year yield to 1.3462%. [US/]

“My baseline forecast is still to have inflation around 4% this year, ending this year, and then starting to fall back to 2% over the years 2022 and 2023. However, I do see elevated risk that inflation could run higher,” Harker told the Nikkei.

“I’d like to start the taper process soon, so that we can finish the tapering process, so if we need to increase the policy rate, we have the room to do that. And I think we need to buy ourselves that option.”

Also ahead on the calendar are Chinese economic data, likely to highlight wobbly retail sales on Wednesday and further add to concerns about the world’s second biggest economy.

The yuan was steady at 6.4424 per dollar in offshore trade. Elsewhere, sterling held at $1.3834 and cryptocurrencies bitcoin and ether were broadly steady, with bitcoin at about $46,000.

(Reporting by Tom Westbrook; Editing by Lincoln Feast.)

Source Link Dollar finds footing as traders await inflation data

David Barret
David Barret

Related posts:

  1. Motor racing-Bottas rules out imminent announcement on his F1 future
  2. U.S. to give Ukraine more than $45 million in additional humanitarian aid -Blinken
  3. Motor racing-Hamilton happy if ‘incredibly talented’ Russell joins Mercedes
  4. This WhatsApp security flaw could have let hackers access all your chats

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • The Biggest Millisecond Pulsar Glitch Recorded Represents An Astronomical Mystery
  • There Are Five Different Types Of Bad Sleeper. Which One Are You?
  • In A World First, Autonomous Underwater Robot Sets Off On Mission To Circumnavigate The Globe
  • First-Ever Living Recipient Of A Pig-To-Human Liver Transplant Survived For 171 Days
  • 190-Million-Year-Old “Sword Dragon Of Dorset” Likely The World’s Most Complete Pliensbachian Reptile
  • Acting CDC Director Calls For Splitting Up MMR Shots – But There’s A Reason We Don’t Do That
  • New Species Of Tiny Poison Dart Frog With Stripy Back And Spotty Legs Loves Bamboo
  • Not A Canine, Nor A Feline: Four Incredibly Cute Fossa Pups Have Been Born At A Zoo
  • The Most “Pristine Star” In The Universe May Have Been Identified – Researchers Link It To Elusive “Population III” Stars
  • 78-Million-Year-Old Crater Reveals Asteroid Impacts Can Create Long-Lasting Habitats For Microbial Life
  • 24 Years Of NASA Satellite Data Suggest The World Is Getting Darker, And It’s Happening Faster In The North
  • Two Black Holes Circling Each Other Captured In Image For The Very First Time
  • Rapa Nui’s Famous Moai Statues Really “Walked” – Physics Confirms It
  • Could Dogs Be Taught To Talk With Language? This Lab Wants To Find Out
  • SETI Paper Responds To Claims Interstellar Object 3I/ATLAS Might Be An Alien Spacecraft
  • Rare Chance To See “Pink Meanie” Jellyfish With 20-Meter Tentacles Blooming Off Texas
  • Stranded Dolphins’ Brains Show Signs Of Alzheimer’s-Like Disease
  • Natural Sweetener Stevia Could Help Bolster Common Hair Loss Treatment
  • “Dig Deep, And Persevere”: Number 16, The World’s Longest-Lived Spider, Died Aged 43
  • IFLScience The Big Questions: What Is Time And How Do We Measure It?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version