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

Dollar slips early against pound, kiwi looks to RBNZ

ForexFeb 23, 2021 07:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration

By Stanley White

TOKYO (Reuters) - The dollar slipped to a three-year low against the British pound and nursed losses against commodities currencies on Wednesday as investors increased bets that a global economic recovery will boost riskier assets.

The New Zealand dollar was in focus before a central bank meeting that could send the kiwi higher if policymakers make any positive comments about the local economy.

U.S. Federal Reserve Chair Jerome Powell reiterated on Tuesday that interest rates will remain low and the Fed will keep buying bonds to support the U.S. economy, which many traders say is a long-term negative factor for the dollar.

At the same time, more money is flowing toward currencies that are expected to benefit from a pick-up in global trade and to countries that are bouncing back quickly from the coronavirus pandemic, which is also weighing on the dollar.

"Signs of economic recovery are lifting commodities prices, which in turn supports currencies of commodities exporters," said Junichi Ishikawa, foreign exchange strategist at IG Securities.

"Risk appetite has improved a lot, and this leaves the dollar at a big disadvantage."

The Australian dollar, which tends to benefits from rising metal and energy prices, traded near a three-year high.

The British pound rose to $1.4120, the highest since April 2018.

The outlook for sterling has brightened as investors cheer Britain's rapid coronavirus vaccination programme and its plans to ease lockdown restrictions on economic activity.

Against the euro, the dollar traded at $1.2153, close to a six-week low.

The dollar held steady at 105.29 Japanese yen.

Powell pushed back against suggestions that loose monetary policy will lead to runaway inflation and financial bubbles, which have emerged as two important themes this year, because there is growing scepticism about the rapid pace of gains in global stocks.

For economies that have limited disruptions caused by the coronavirus outbreak, their central bankers now face questions of when to start tightening policy, which makes the dollar look less attractive, some analysts say.

The Reserve Bank of New Zealand is expected to keep policy on hold on Tuesday, but three economists in a Reuters poll expect a rate hike by the end of next year due to a quicker-than-expected economic recovery.

Ahead of the decision, the New Zealand dollar held steady at $0.7338, close to a three-year high.

========================================================

Currency bid prices at 0012 GMT

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

Previous Change

Session

Euro/Dollar $1.2153 $1.2150 +0.02% -0.53% +1.2155 +1.2143

Dollar/Yen 105.2950 105.2600 +0.05% +1.96% +105.3250 +105.2400

Euro/Yen 127.96 127.86 +0.08% +0.82% +127.9800 +127.7800

Dollar/Swiss 0.9054 0.9054 +0.02% +2.36% +0.9056 +0.9048

Sterling/Dollar 1.4118 1.4112 +0.05% +3.35% +1.4122 +1.4111

Dollar/Canadian 1.2589 1.2590 +0.03% -1.10% +1.2596 +1.2583

Aussie/Dollar 0.7908 0.7909 -0.03% +2.79% +0.7915 +0.7903

NZ 0.7338 0.7343 -0.05% +2.20% +0.7343 +0.7334

Dollar/Dollar

All spots

Tokyo spots

Europe spots

Volatilities

Tokyo Forex market info from BOJ

Dollar slips early against pound, kiwi looks to RBNZ
 

Related Articles

Dollar Bounces Off Lows; Fed Remains Accommodative
Dollar Bounces Off Lows; Fed Remains Accommodative By Investing.com - Apr 09, 2021 3

By Peter Nurse Investing.com - The dollar edged higher in early European trading Friday, but remains anchored near two-week lows following disappointing jobless figures and with...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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)
Mike Chen
Mike Chen Feb 23, 2021 8:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sell dollars! Buy assets
 
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