Dollar Drifts Lower Against Major Rivals

RTTNews | Před 965 dny
Dollar Drifts Lower Against Major Rivals

(RTTNews) - Despite comments from the Federal Reserve Chair Jerome Powell that further monetary policy tightening, the U.S. dollar drifted lower against its major counterparts on Wednesday.

The dollar shed ground after data showed a slower pace of growth in the nation's private sector employment, but regained some ground after the Fed raised interest rate by 25 basis points and said there will be further hikes in future.

After a two-day meeting, the Fed said it has decided to raise the target range for the federal funds rate by 25 basis points to 4.50 to 4.75%.

The Fed also said it anticipates ongoing increases in interest rates will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

During his post-meeting press conference, Fed Chair Jerome Powell said the central bank does not believe rates are yet at a sufficiently restrictive policy stance and suggested a "couple of more rate hikes" will be needed to get to that level.

However, the currency swiftly dropped again and kept sliding as the session progressed.

ADP said private sector employment climbed by 106,000 jobs in January after surging by an upwardly revised 253,000 jobs in December. Economists had expected private sector employment to increase by 178,000 jobs compared to the addition of 235,000 jobs originally reported for the previous month.

A separate report released by the Institute for Supply Management showed activity in the U.S. manufacturing sector contracted for the third consecutive month in January.

The ISM said its manufacturing PMI dipped to 47.4 in January from 48.4 in December, with a reading below 50 indicating a contraction. Economists had expected the index to edge down to 48.0.

Activity in the U.S. manufacturing sector contracted for the third consecutive month in January, the Institute for Supply Management revealed in a report released on Wednesday.

The ISM said its manufacturing PMI dipped to 47.4 in January from 48.4 in December, with a reading below 50 indicating a contraction. Economists had expected the index to edge down to 48.0. The dollar index dropped to a low of 101.04 before recovering to 101.20, still down nearly 0.9% from the previous close.

Against the Euro, the dollar fell to 1.0989, weakening from 1.0866.

The dollar weakened to 1.2372 against Pound Sterling, giving up nearly 0.5% from Tuesday's closing level.

Against the Japanese currency, the dollar weakened to 128.95 yen, down from 130.11 yen.

The dollar dropped to 0.7135 against the Aussie, losing more than 1.1%. Against Swiss franc, the dollar is down at CHF 0.9084, after settling at CHF 0.9162 on Tuesday.

The dollar is down marginally against the Loonie, fetching C$ 1.3290 a unit.

read more
Asian Markets Track Wall Street Lower

Asian Markets Track Wall Street Lower

Asian stock markets are mostly lower on Wednesday, following the negative cues from Wall Street overnight, amid rising ambiguity over the outlook for interest rates after US Fed Chair Jerome Powell gave little indication about the future path of interest rates. Renewed trade tensions with the United States and the escalating tensions in Europe and the Middle East are weighing on market sentiment.
RTTNews | Před 13 minutami
Losing Streak May Continue For Thai Stock Market

Losing Streak May Continue For Thai Stock Market

The Thai stock market has moved lower in five straight sessions, shedding more than 35 points or 2.6 percent along the way. The Stock Exchange of Thailand now sits just above the 1,270-point plateau and it may take further damage again on Wednesday.
RTTNews | Před 1 h 21 min
Japanese Market Modestly Lower

Japanese Market Modestly Lower

The Japanese stock market is modestly lower in post-holiday trading on Wednesday, reversing some of the gains in the previous session, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling below the 45,450 level, with a lack of direction leading to a mixed performance across most sectors.
RTTNews | Před 1 h 46 min
Indonesia Stock Market May Be Stuck In Neutral On Wednesday

Indonesia Stock Market May Be Stuck In Neutral On Wednesday

The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the seven-day winning streak in which it had surged almost 400 points or 5 percent. Now at a fresh record closing high, the Jakarta Composite Index sits just above the 8,125-point plateau although it's due for profit taking on Wednesday.
RTTNews | Před 1 h 51 min
Lower Open Expected For Hong Kong Stock Market

Lower Open Expected For Hong Kong Stock Market

The Hong Kong stock market has finished lower in two straight sessions, shedding almost 400 points or 1.7 percent along the way. The Hang Seng Index now sits just beneath the 26,160-point plateau and it's tipped open under pressure again on Wednesday.
RTTNews | Před 2 h 6 min
Australian Market Notably Lower

Australian Market Notably Lower

Australian shares are trading notably lower on Wednesday, snapping a three-session winning streak, with the benchmark S&P/ASX 200 falling below the 8,000 mark, following the broadly negative cues from Wall Street overnight, with weakness in gold miners, financial and technology stocks partially offset by gains in iron ore miners and energy stocks.
RTTNews | Před 2 h 16 min
China Shares Tipped To Open Under Water On Wednesday

China Shares Tipped To Open Under Water On Wednesday

The China stock market turned lower again on Tuesday, one day after snapping the two-day slide in which it had dropped more than 55 points or 1.5 percent. The Shanghai Composite Index now rests just above the 3,820-point plateau and the losses may accelerate on Wednesday.
RTTNews | Před 2 h 21 min