Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Down, Steadies as Investors Gauge Interest Rate Hike Pace

ForexOct 24, 2021 10:51PM 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 Monday morning in Asia, steadying after its steepest weekly loss in more than a month, as investors gauge the relative pace of interest rate hikes from central banks.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.01% to 93.618 by 10:44 PM ET (2:44 AM GMT).

The USD/JPY pair edged up 0.15% to 113.64.

The AUD/USD pair inched up 0.09% to 0.7471, with Australia releasing its consumer price index on Wednesday. The NZD/USD pair inched down 0.04% to 0.7150, with New Zealand markets closed for a holiday.

The USD/CNY pair inched up 0.09% to 6.3899, with China dealing with its latest COVID-19 outbreak. The GBP/USD pair edged up 0.14% to 1.3770. There is now a 60% chance that the Bank of England will hike its interest rate at its meeting in the following week.

The greenback softened, particularly against the yen, after U.S. Federal Reserve Chairman Jerome Powell said on Friday that asset tapering should begin soon. He did, however, say that it was not yet time for interest rate hikes. Powell’s remarks came after investors priced in Fed interest rate hikes starting in the second half of 2022. However, they have already begun trimming long dollar positions in anticipation that other central banks will move sooner.

Some investors were cautious about further gains, with the Fed is expected to begin asset tapering soon.

"Dollar risks remain skewed to the upside," Commonwealth Bank of Australia (OTC:CMWAY) currency analyst Kim Mundy told Reuters.

"Fed members are slowly conceding that inflation risks are skewed to the upside and the upshot is that interest rate markets can continue to price a more aggressive Fed Funds rate hike cycle which can support the dollar."

Investors now await U.S. data, including core durable goods orders that will be released on Wednesday and the GDP for the third quarter following a day later.

The Bank of Japan and the European Central Bank will also hand down their respective policy decisions on Thursday.

Meanwhile, the Turkish lira was braced for selling, as state banks are expected to follow a surprise interest rate cut from the Central Bank of the Republic of Turkey.

Dollar Down, Steadies as Investors Gauge Interest Rate Hike Pace
 

Related Articles

Dollar slips as Omicron worries ease; Aussie rises
Dollar slips as Omicron worries ease; Aussie rises By Reuters - Dec 08, 2021

By Saqib Iqbal Ahmed NEW YORK (Reuters) -The dollar slipped against several of its major counterparts on Wednesday, as easing concerns about the economic hit from the Omicron...

Rouble firms as Biden-Putin talks soothe nerves
Rouble firms as Biden-Putin talks soothe nerves By Reuters - Dec 08, 2021

MOSCOW (Reuters) - The Russian rouble firmed past 74 to the dollar on Wednesday, supported by the central bank's intention to raise rates and an increase in market risk appetite...

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.
Comments (1)
Bəhruz Cabbarov
Bəhruz Cabbarov Oct 25, 2021 5:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
 
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