Dollar Remains Firm, Gains Against Major Counterparts

RTTNews | 142 days ago
Dollar Remains Firm, Gains Against Major Counterparts

(RTTNews) - The U.S. dollar firmed against its major counterparts on Tuesday with traders assessing prospects of potential tariffs by the Trump administration, tracking reports from Ukraine peace talks, digesting a batch of U.S. economic data, and the Reserve Bank of Australia's rate cut announcement.

A report released by the Federal Reserve Bank of New York showed a turnaround by regional manufacturing activity in the month of February.

The New York Fed said its general business conditions index jumped to a positive 5.7 in February from a negative 12.6 in January, with a positive reading indicating growth. Economists had expected the index to climb to a negative 1.0.

Meanwhile, the report said optimism about the outlook for conditions over the next six months dropped significantly, with the index for future business activity slumping to 22.2 in February from 36.7 in January.

A separate report released by the National Association of Home Builders showed homebuilder confidence in the U.S. has unexpectedly deteriorated in the month of February.

The report said the NAHB/Wells Fargo Housing Market Index slumped to 42 in February after inching up to 47 in January. Economists had expected the index to come in unchanged.

Traders also noted some hawkish remarks from Fed officials. Fed Governors Bowman and Waller both favoured pausing rate cuts due to persistent inflation.

Federal Reserve Governor Christopher Waller noted late Monday that recent economic data support keeping interest rates on hold, but officials can get back to cutting rates at some point this year, if inflation behaves as it did in 2024.

Separately, Michelle Bowman, Governor of the Federal Reserve, said that she wants to see more progress on inflation before deciding on another rate cut.

The dollar index climbed to 107.12 before easing slightly to 107.05, but still remained well up in positive territory, gaining 0.45%.

Against the Euro, the dollar strengthened to 1.0448 from previous closing value of 1.0486. Against Pound Sterling, the dollar firmed to 1.2610 from 1.2626.

The dollar climbed against the Japanese currency, fetching 152.08 yen a unit, and againt the Loonie, it gained marginally at 0.6352.

The greenback gained against the Swiss currency, fetching CHF 0.9034. Against the Loonie, the dollar edged up to C$ 1.4200.

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