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

Dollar slips further as oil rallies, commodity currencies gain

EconomyAug 24, 2021 03:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A picture illustration shows U.S. 100-dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao/File Photo

By Herbert Lash and Elizabeth Howcroft

NEW YORK/LONDON (Reuters) -The dollar eased further on Tuesday as risk-related currencies benefited from rising commodity prices and markets set aside concerns about the spread of the Delta coronavirus variant to gauge data that showed a U.S. economy in strong recovery mode.

Risk appetite in global markets strengthened after the U.S. Food and Drug Administration on Monday granted full approval to the COVID-19 vaccine developed by Pfizer (NYSE:PFE) and BioNTech in a move that could accelerate U.S. inoculations.

A bounce in China's technology sector also contributed to risk-on sentiment that helped boost the Canadian, Australian and New Zealand dollars.

"The euro, Canada and Aussie currencies made new lows for the year last week, and so the dollar is consolidating and its upside momentum has stalled," said Marc Chandler, a managing director at Bannockburn Global Forex.

The dollar index, which measures the greenback against a basket of six currencies, fell 0.095% to 92.899.

The euro was up 0.07% at $1.1751, while the yen traded down 0.01% at $109.6700.

Rising COVID-19 infections caused by the highly contagious Delta variant have fueled concerns about the recovery from the pandemic. But markets have largely overlooked that this week, with analysts citing thin liquidity as a factor driving apparent swings in risk appetite.

Market attention is focused on the Federal Reserve's Jackson Hole conference on Friday, when some investors expect Fed Chair Jerome Powell to hint at a possible timeline for tapering the U.S. central bank's bond-buying monetary stimulus.

"We think investors will want to wait to hear on this subject from Jerome Powell on Friday before pushing ahead with another major round of risk-buying, dollar-selling," ING strategists wrote in a note to clients.

COVID-19 case counts are also being watched closely, particularly in China and New Zealand. Outbreaks in China appear to be coming under control while in New Zealand, where monetary policy was put on hold last week due to measures to contain the Delta variant, a lockdown remains in effect.

The Australian dollar, viewed as a liquid proxy for risk appetite, rose 0.6% at $0.7256.

The New Zealand dollar gained 0.8% to $0.6944, trading at one-week highs, boosted by comments from the Reserve Bank of New Zealand's assistant governor, who said policymakers had actively considered raising rates last week.

The RBNZ left rates on hold at a record low 0.25% but flagged a tightening before the end of the year.

The Norwegian crown rose 0.9% against the euro, with the pair changing hands at 10.3808, while the Canadian dollar was up 0.4% to 1.2594 against the U.S. dollar.

Norway's central bank has said it plans to raise its key interest rate next month as the economy shakes off the effects of the COVID-19 pandemic.

Oil prices extended Monday's rally, driven by a bullish demand outlook after the full approval of the Pfizer-BioNTech vaccine and Mexico suffered a large production outage.

Brent crude oil futures settled up $2.30 at $71.05 a barrel, a 3.35% gain.

The rise in oil prices has washed out some of the excessive bearishness toward the Canadian currency, Chandler said.

The Canadian dollar hit eight-month lows last week. Of the major trading currencies, Canada's is among the most sensitive to the equity market, Chandler said.

Elsewhere, bitcoin edged back below $50,000, which was breached for the first time since May on Monday. The digital currency was down 2.7% at about $48,237.


Currency bid prices at 2:52PM (1852 GMT)

Description RIC Last U.S. Close Previous Session Pct Change YTD Pct High Bid Low Bid


Dollar index 92.8880 92.9940 -0.10% 3.231% +93.0840 +92.8040

Euro/Dollar $1.1753 $1.1746 +0.06% -3.81% +$1.1766 +$1.1728

Dollar/Yen 109.6750 109.6950 -0.02% +6.15% +109.8750 +109.4150

Euro/Yen 128.90 128.83 +0.05% +1.56% +129.0300 +128.6000

Dollar/Swiss 0.9129 0.9123 +0.05% +3.17% +0.9139 +0.9111

Sterling/Dolla $1.3729 $1.3729 +0.01% +0.50% +$1.3747 +$1.3694


Dollar/Canadia 1.2594 1.2649 -0.44% -1.11% +1.2658 +1.2579


Aussie/Dollar $0.7256 $0.7212 +0.61% -5.67% +$0.7271 +$0.7201

Euro/Swiss 1.0729 1.0714 +0.14% -0.72% +1.0734 +1.0701

Euro/Sterling 0.8560 0.8557 +0.04% -4.22% +0.8572 +0.8543

NZ $0.6944 $0.6891 +0.78% -3.29% +$0.6965 +$0.6880


Dollar/Norway 8.8295 8.9275 -1.05% +2.87% +8.9175 +8.8270

Euro/Norway 10.3808 10.4709 -0.86% -0.82% +10.4815 +10.3670

Dollar/Sweden 8.6911 8.7170 -0.11% +6.04% +8.7235 +8.6755

Euro/Sweden 10.2152 10.2266 -0.11% +1.37% +10.2439 +10.2020

Dollar slips further as oil rallies, commodity currencies gain

Related Articles

Dollar pares losses as Powell signals bond taper
Dollar pares losses as Powell signals bond taper By Reuters - Oct 22, 2021 4

By Karen Brettell NEW YORK (Reuters) - The dollar pared losses on Friday after Federal Reserve Chairman Jerome Powell said the U.S. central bank should begin reducing its asset...

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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.
Comments (1)
Abdul Ayatu
Abdul Ayatu Aug 24, 2021 7:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm grateful for this opportunity
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
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'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
Sign up with Email