Reuters
Published Jul 08, 2020 08:26PM ET
By Stanley White
TOKYO (Reuters) - The dollar nursed losses against most currencies on Thursday as a rally in riskier assets such as global equities and commodities put a dent in safe-haven demand for the U.S. currency.
Traders in Asia are focused on whether China's yuan can extend gains against the greenback as investors of all stripes shift funds to increase positions in Chinese stocks.
Lingering worries about the spread of the coronavirus could keep some currency pairs in a tight range, but the dollar's losses are gradually increasing as sentiment favours riskier bets on long-term economic growth.
"Rising stocks and a dip in Treasury yields are slight negatives for the dollar, but the market can't move too far because we still have to worry about the virus," said Minori Uchida, head of global market research at MUFG Bank.
"A lot of major U.S. economic data have been positive, so this will be less of a trading factor going forward. People are looking for cues from stocks, yields, and hedging costs."
The dollar bought 0.9384 Swiss franc
Against the euro (EUR=), the dollar was quoted at $1.1334, close to a three-week low.
The greenback was also close to a three-week low against the pound
Sterling held steady at 89.86 pence per euro (EURGBP=D3).
The dollar was little changed at 107.32 yen
Asian stocks rose on Thursday in a sign that financial markets are following gains in the tech-heavy Nasdaq (IXIC) to a record closing high on Wednesday.
A light event calendar in Asia on Thursday could keep some currency pairs in tight ranges, but analysts said sentiment favours more dollar declines as investors try to look past a recent spike in coronavirus cases in some countries.
The coronavirus pandemic is a global phenomenon, but success in containing the virus varies greatly from region to region, which has discouraged some investors from taking big positions before the traditional summer holiday season.
Elsewhere in currencies, the Australian dollar AUD=D3 rose to $0.6990, approaching its strongest level in a month.
The New Zealand dollar NZD=D3 was little changed at $0.6578, also close to a one-month high.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.