Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Stable Ahead of Fed Minutes; Turkish Lira, New Zealand Dollar Fall Back

ForexNov 24, 2021 02:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse

Investing.com - The dollar traded largely flat Wednesday, taking a break after recent strong gains ahead of the release of the minutes from the Federal Reserve meeting that sanctioned the tapering of the central bank’s emergency bond-buying program. 

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded flat at 96.483, just off levels last seen in June 2020.

USD/JPY fell 0.2% to 114.91, just off the new four-and-a-half-year high of 115.24 hit earlier. GBP/USD edged 0.1% higher to 1.3385, EUR/USD was flat at 1.1246 and AUD/USD fell 0.1% to 0.7219.

The dollar has been in demand of late, climbing to its highest levels in 2021, with traders betting that the Federal Reserve will hike interest rates sooner than expected, and certainty before the majority of its major peers, in response to surging inflationary pressures. 

It also received a boost on Tuesday with the nomination of Jerome Powell to continue heading up the central bank as he is widely perceived as being more likely to respond more quickly to the elevated prices than Lael Brainard, who was also in the running for the role.

Powell’s nomination “generated another round of USD buying, as the risk of the more dovish Lael Brainard taking over was priced out (she was, however, named Vice Chair) and markets reinforced their views around a first Fed hike by mid-2022,” said analysts at ING in a note.

Treasury yields have slipped back early Wednesday, but overnight yields on 10-year U.S. Treasury notes rose more than 5 basis points to as high as 1.68% while yields on 30-year Treasury bonds gained 6 bps. Two-year U.S. Treasury yields also eased back, having earlier touched their highest level since March 2020.

Attention Wednesday will now turn to a number of economic data releases, ahead of Thursday’s Thanksgiving holiday, including the latest third-quarter GDP reading, October durable goods and the weekly initial jobless claims.

Most eyes, however, will be on the minutes from the November Fed meeting, the gathering that approved the easing back of the central bank’s bond-buying program started at the beginning of the pandemic. Investors will be looking for clues on whether the pace of this tapering could accelerate, potentially bringing forward the date of the first interest rate hike. The release of personal consumer expenditures price indices at 10 AM ET will be interpreted in this light.

Elsewhere, NZD/USD fell 0.6% to 0.6908, falling despite the Reserve Bank of New Zealand lifting its interest rate to 0.75% and raising its long-term cash rate projection by 50 basis points.

Investors had expected a bigger hike and a higher long-term cash rate projection from the central bank, prompting the kiwi to drop sharply.

USD/TRY rose 0.7% to 12.9145, with the Turkish lira remaining under pressure after this pair soared over 10% on Tuesday after President Tayyip Erdogan defended recent rate cuts and vowed to win his "economic war of independence".

 

Dollar Stable Ahead of Fed Minutes; Turkish Lira, New Zealand Dollar Fall Back
 

Related Articles

India rupee sees worst week in seven on new variant
India rupee sees worst week in seven on new variant By Reuters - Nov 26, 2021

By Swati Bhat MUMBAI (Reuters) - The Indian rupee saw its worst week in seven on Friday, while the benchmark 10-year yield closed at its lowest in more than two weeks as concerns...

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)
Dave Jones
Dave Jones Nov 24, 2021 3:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Turkey should use bitcoin
 
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