Forex - Dollar index at 5-week lows on diminished rate hike bets
Investing.com
Published Jun 08, 2016 04:21AM ET
Dollar index hits 5-week lows as Fed rate hike expectations fade
Investing.com - The dollar fell to five week lows against a basket of the other major currencies on Wednesday as markets continued to adjust to diminished expectations for a near term rate hike by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 93.75, the lowest level since May 5.
Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after Friday’s dismal employment report for May, which showed that the economy added just 38,000 jobs last month, the smallest increase since September 2010.
A speech by Fed Chair Janet Yellen on Monday indicated that interest rates won’t rise until uncertainty over the economic outlook is resolved.
Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.
The Fed raised interest rates for the first time in almost a decade in December.
The dollar was lower against the yen, with USD/JPY down 0.33% at 107.00 after falling as low as 106.72 earlier.
The dollar recovered some ground after data showing that China’s imports rose more than expected in May, adding to hopes that the economy is steadying.
The euro was trading near five-week highs, with EUR/USD at 1.1369.
Sterling edged lower, with GBP/USD easing 0.11% to 1.4532.
The pound ended the previous session with gains of 0.7% after opinion polls showing the Remain campaign with a lead over the Leave campaign ahead of the June 23 European Union referendum.
Get The News You Want
Written By: Investing.com
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.