Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Down, but Set for Weekly Gain, as COVID-19 Worries Bite

ForexJul 15, 2021 11:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was down on Friday morning in Asia. However, the greenback is set for its best weekly gain in about a month as ongoing investor worries about a quicker-than-expected U.S. interest rate hike and by rising COVID-19 infections capped losses.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.06% to 92.575 by 11:45 PM ET (3:46 AM GMT).

The USD/JPY pair inched up 0.09% to 109.95. The Bank of Japan (BOJ) concluded a two-day meeting earlier in the day, where it left its yield curve control (YCC) target unchanged at -0.1% for short-term interest rates and 0% for 10-year bond yields. BOJ also cut the current fiscal year’s growth forecast while maintaining that the economy was headed for a moderate recovery.

The AUD/USD pair edged up 0.15% to 0.7438, but with the lockdown in Australia’s biggest cities of Melbourne and Sydney weighing on the Australian dollar.

Across the Tasman Sea, the NZD/USD pair gained 0.57% to 0.7020.

The USD/CNY pair edged up 0.13% to 6.4655 and the GBP/USD pair inched up 0.07% to 13838, with the U.K. set to lift most of its remaining COVID-19 on Jul. 19.

New Zealand’s consumer price index (CPI) for the second quarter was higher than expected, growing 3.3% year-on-year and 1.3% quarter-on-quarter, a decade high. The New Zealand dollar was among the biggest mover amongst majors in the morning trade after the data’s release.

Investors are now pricing an 86% chance that the Reserve Bank of New Zealand will hike interest rates in August, earlier than expected, becoming the first developed-market central bank to exit from emergency policy settings should it do so.

However, a firm greenback meant that the New Zealand dollar remained within recent ranges.

"Clearly the U.S. dollar has got some power behind it, and I think that's holding back all the majors... there's an interest rate side to it, and sometimes it's a safe-haven bid... we do feel that the dollar's going to be quite strong over the next few months," Westpac strategist Imre Speizer told Reuters.

With Speizer adding that recent U.S. data fed into higher yields and rate-increase expectations, investors now await data on June core retail sales as well as the Michigan consumer sentiment and expectations indexes, due later in the day.

U.S. Treasuries recorded a third consecutive week of gains, with worries over surging COVID-19 outbreaks involving the Delta variant and bets on inflation being transitory pulling long-end yields lower.

The Thai baht, one of the currencies most battered by the recent COVID-19 outbreaks, was set for a fifth consecutive weekly loss as the country posted a record number of daily cases.

Meanwhile, cryptocurrencies fell towards the bottom of recent ranges, with bitcoin at $31,660 and ether at $1,910.

Dollar Down, but Set for Weekly Gain, as COVID-19 Worries Bite
 

Related Articles

Taliban expand economic team as Afghan crisis deepens
Taliban expand economic team as Afghan crisis deepens By Reuters - Sep 21, 2021

(Reuters) - Afghanistan's Taliban government bolstered its economic team on Tuesday, naming a commerce minister and two deputies as the group tries to revive a financial system in...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email