Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Dollar steadies as markets weigh economic risks, central bank moves

08/03/2021 | 03:44pm EDT
FILE PHOTO: Illustration photo of a U.S. five dollar note

NEW YORK (Reuters) - The U.S. dollar steadied on Tuesday, after having lost value against the Japanese yen and Swiss franc, as questions about slowing U.S. economic growth and the COVID-19 Delta variant challenged risk appetite.

The U.S. dollar dipped below 109 yen, and for a second day gave up as much as 0.4% before recovering half of the day's loss to 109.1 yen.

It traded against the Swiss franc as much as 0.3% lower and leveled off with a 0.1% decline for the day. The franc also gained against the euro to its greatest value in nine months.

"The Swiss franc and the yen are benefiting as rising coronavirus cases cloud the outlook for growth," said Joe Manimbo, senior market strategist at Western Union Business Solutions.

But the moves to the safe haven franc and yen also came alongside reminders that currencies are sensitive to talk from central bankers about pulling back on bond purchases and eventually raising rates as their economies come out of the worst of the coronavirus pandemic.

Relatively hawkish comments by central bank officials in Australia and New Zealand on Tuesday led the Australian dollar and the Kiwi dollar to big gains among major currencies.

The index that measures the dollar's strength against a basket of peers was up by a hair to 92.046 at 1902 GMT after declining slightly on Monday.

Last week the dollar lost nearly 1% as U.S. Federal Reserve policy makers said they expected it would still be while before job growth allowed them to pull back on support for the economy.

Strategists have said they do not expect major moves in the dollar before Friday's U.S. jobs report and maybe not until Fed officials speak at the end of August at a symposium of central bankers in Jackson Hole, Wyoming.

The euro was a touch lower at $1.1865, having lost momentum after hitting a one-month high of $1.1909 on Friday. The British pound gained 0.2% to $1.3915.

On Thursday the Bank of England will meet and could send hawkish signals on its policies amid optimism about the British economy.

The 10-year U.S. Treasury yield slipped again early on Tuesday before coming back in the afternoon in New York to near Monday's level of 1.179%. The 10-year yield has been trending generally downward since the end of March.

Market watchers have pointed to the decline in the 10-year yield as a sign of coming disappointment in economic growth, especially with the rise of the Delta variant of COVID-19.

"What's keeping the dollar from really benefiting from the flight to safety is that Treasury yields continue to grind lower," Manimbo said.

In the United States, COVID-19 hospital admissions in Louisiana and Florida have hit a new peak though top U.S. health expert Anthony Fauci has ruled out another lockdown in the country.

(Reporting by David Henry in New York and Ritvik Carvalho in London; Additional reporting by Hideyuki Sano in Tokyo; Editing by Timothy Heritage and Marguerita Choy)

By David Henry

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / BRITISH POUND (AUD/GBP) -0.35% 0.52952 Delayed Quote.-5.43%
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) -0.05% 0.91856 Delayed Quote.-6.20%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) 0.13% 1.03684 Delayed Quote.-3.38%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) 0.35% 1.88785 Delayed Quote.5.90%
BRITISH POUND / EURO (GBP/EUR) 0.43% 1.17145 Delayed Quote.4.22%
BRITISH POUND / SWISS FRANC (GBP/CHF) 0.55% 1.2708 Delayed Quote.4.56%
CANADIAN DOLLAR / BRITISH POUND (CAD/GBP) -0.28% 0.576578 Delayed Quote.0.46%
CANADIAN DOLLAR / EURO (CAD/EUR) 0.16% 0.675479 Delayed Quote.4.79%
DOW JONES FXCM DOLLAR INDEX 0.00% 12011.57 Delayed Quote.2.85%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) -0.11% 1.61153 Delayed Quote.1.40%
EURO / BRITISH POUND (EUR/GBP) -0.46% 0.85361 Delayed Quote.-4.04%
EURO / JAPANESE YEN (EUR/JPY) -0.01% 129.822 Delayed Quote.3.02%
EURO / SWISS FRANC (EUR/CHF) 0.13% 1.08506 Delayed Quote.0.22%
EURO / US DOLLAR (EUR/USD) -0.15% 1.1696 Delayed Quote.-4.06%
HONGKONG-DOLLAR / SWISS FRANC (HKD/CHF) 0.35% 11.917 Delayed Quote.4.02%
INDIAN RUPEE / AUSTRALIAN DOLLAR (INR/AUD) -0.05% 0.01865 Delayed Quote.4.89%
INDIAN RUPEE / BRITISH POUND (INR/GBP) -0.23% 0.00989 Delayed Quote.-1.04%
INDIAN RUPEE / EURO (INR/EUR) 0.10% 0.011566 Delayed Quote.3.17%
JAPANESE YEN / SWISS FRANC (JPY/CHF) 0.12% 0.8348 Delayed Quote.-2.65%
NEW ZEALAND DOLLAR / SWISS FRANC (NZD/CHF) 0.08% 0.64927 Delayed Quote.2.03%
SINGAPORE-DOLLAR / SWISS FRANC (SGD/CHF) 0.32% 0.6851 Delayed Quote.2.41%
US DOLLAR / AUSTRALIAN DOLLAR (USD/AUD) 0.11% 1.377904 Delayed Quote.6.00%
US DOLLAR / BRITISH POUND (USD/GBP) -0.25% 0.72982 Delayed Quote.0.03%
US DOLLAR / EURO (USD/EUR) 0.15% 0.854993 Delayed Quote.4.23%
US DOLLAR / SWISS FRANC (USD/CHF) 0.34% 0.9277 Delayed Quote.4.45%
Latest news "Economy & Forex"
07:37aPanic buying leaves up to 90% of fuel pumps dry in major British cities
07:36aBiohaven's drug candidate for neurological disorder fails study
07:31aAMAZON COM : to start offering insurance to UK businesses -broker
07:28aRolls-Royce agrees sale of Spanish unit ITP for $2 billion
07:24aCHINA EVERGRANDE : says stadium construction proceeding as planned
07:20aWhat is behind China's power crunch?
07:15aTSX futures gain as oil prices surge
07:12aShell's UK power retailer to grow by 25% after rival's default
07:10aBiohaven's drug candidate for neurological disorder fails study
07:09aRolls-royce holdings says it has clinched 1.7bn euros sale of its itp aero division to consortium comprising bain capital
Latest news "Economy & Forex"