Investing.com - Financial Markets Worldwide
🚀 ProPicks AI Hits +34.9% Return!Read Now

FOREX-Dollar slips as U.S. stimulus impasse halts rebound

Published 08/12/2020, 06:53 PM
Updated 08/12/2020, 07:00 PM
© Reuters.
DX
-

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Updates prices)
By Iain Withers
LONDON, Aug 12 (Reuters) - The dollar slipped on Wednesday
as political wrangling over a stimulus package for the U.S.
economy halted its recent rebound.
Investors are watching for signs a political impasse in
Washington over a further rescue package for the pandemic-hit
economy can be overcome. The dollar, which has held above a two-year low hit last
Thursday of 92.495, was down 0.2% against a basket of currencies
at 93.525 =USD , after shedding gains made in Asian trading.
"If there is no movement in the negotiations soon, the Fed's
concerns are quite likely to have an impact on the dollar sooner
or later," FX analysts at Commerzbank said in a note.
U.S. inflation figures due at 1230 GMT are expected to show
consumer price growth has drifted down to 1.1% on a year-on-year
basis, from 1.2% in June.
The dollar made gains against the yen JPY=EBS , with the
Japanese currency down 0.3%, after slumping to 106.885 earlier,
its lowest since July 24.
Improved U.S. debt yields have pressured the yen by luring
investment from zero-yielding Japan.
Sterling GBP=D3 was broadly flat, despite data showing the
British economy had entered a deep recession, as signs of a
recovery in June provided some support for the currency.

The New Zealand dollar NZD=D3 fell 0.4% to $0.6555, after
the country's central bank held rates but surprised markets by
extending its bond-buying programme and putting slightly more
emphasis on the possibility of negative rates. "Taken together, that's why interest rates have fallen a few
basis points and why the kiwi fell," said Westpac FX analyst
Imre Speizer. "That's a modest dovish reaction."

Latest comments

Install Our App
Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.