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FOREX-Dollar rises, poised for fourth month of gains

Published 05/30/2019, 11:10 PM
Updated 05/30/2019, 11:20 PM
© Reuters.  FOREX-Dollar rises, poised for fourth month of gains
US500
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US10YT=X
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DXY
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* Wall Street's gains curb demand for greenback
* Euro, pound hold support levels, yen stalls
* Sterling on track for steepest monthly loss in a year
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, May 30 (Reuters) - The dollar rose on Thursday, on
track to post a fourth straight month of gains, as the trade
stand-off between China and the United States prompted traders
to put money into perceived safe currencies including the
greenback.
Safe-haven demand lifted the dollar to a two-year high
against a basket of currencies last week. Appetite for the
greenback was somewhat curbed on Thursday as Wall Street
stabilized following steep losses due to the trade worries.
The euro and sterling holding above key support levels at
$1.11 and $1.26, respectively, also restrained the greenback's
momentum, analysts said.
"The dollar is getting tired at these levels," said Dean
Popplewell, chief currency strategist at Oanda. "Some people
want to take off some of these positions before June."
At 10:53 a.m. (1453 GMT), an index that tracks the dollar
against six major currencies .DXY was up 0.1% at 98.246. It
reached 98.371 a week ago, marking its strongest level since May
2017.
The S&P 500 .SPX was up 0.45%, while benchmark 10-year
Treasury yields US10YT=RR was 2.8 basis points higher at
2.264%.
The dollar index has increased 0.76% in May, putting it on
track for four straight months of gains.
The greenback will likely extend its monthly winning streak
against the euro, which began in January.
Signs of a sagging euro zone economy, together with worries
about the rise of euro-sceptic political parties within member
countries, have hurt the single currency.
The euro EUR=EBS was 0.07% down at $1.1123, within
striking distance of $1.11055 hit a week ago, which was a
two-year low.
The dollar has also remained resilient against the yen,
despite the risk averse environment.
The greenback was 0.21% higher at 109.82 yen, rebounding
from a two-week low on Wednesday.
Analysts said the yen, a safe-haven currency backed by
Japan's status as the world's biggest creditor nation, remained
relatively weak because of domestic demand for dollars.
"As there's persistent yen-selling and dollar-buying from
Japanese investors when the rate approaches the 109.10 yen per
dollar level, it's not easy for the yen to rise above the 109
level," said Yukio Ishizuki, senior currency strategist at Daiwa
Securities.
Sterling GBP=D3 was poised for the biggest monthly drop
against the dollar in a year as the imminent departure of
Theresa May as prime minister deepened fears about a chaotic
exit for Britain from the European Union. On Thursday, the pound was 0.34% higher at $1.258, while the
euro EURGBP=D3 was up 0.24% at 88.37 pence.
========================================================
Currency bid prices at 10:54AM (1454 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1121 $1.1129 -0.07% -3.05% +1.1144 +1.1117
Dollar/Yen JPY= 109.8000 109.5800 +0.20% -0.42% +109.9200 +109.4900
Euro/Yen EURJPY= 122.12 121.97 +0.12% -3.25% +122.2500 +121.9500
Dollar/Swiss CHF= 1.0080 1.0075 +0.05% +2.75% +1.0098 +1.0072
Sterling/Dollar GBP= 1.2583 1.2625 -0.33% -1.36% +1.2639 +1.2581
Dollar/Canadian CAD= 1.3506 1.3519 -0.10% -0.96% +1.3520 +1.3485
Australian/Doll AUD= 0.6901 0.6917 -0.23% -2.11% +0.6936 +0.6903
ar
Euro/Swiss EURCHF= 1.1214 1.1222 -0.07% -0.36% +1.1249 +1.1214
Euro/Sterling EURGBP= 0.8836 0.8812 +0.27% -1.65% +0.8840 +0.8809
NZ NZD= 0.6496 0.6509 -0.20% -3.29% +0.6527 +0.6497
Dollar/Dollar
Dollar/Norway NOK= 8.7604 8.7518 +0.10% +1.41% +8.7688 +8.7383
Euro/Norway EURNOK= 9.7438 9.7432 +0.01% -1.64% +9.7639 +9.7331
Dollar/Sweden SEK= 9.5376 9.5494 -0.20% +6.40% +9.5632 +9.5315
Euro/Sweden EURSEK= 10.6073 10.6290 -0.20% +3.35% +10.6415 +10.5997


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