Dollar consolidates after strongest week in two years

GLOBAL-FOREX:Dollar consolidates after strongest week in two years

Reuters
Updated7 Oct 2024, 06:07 AM IST
Dollar consolidates after strongest week in two years
Dollar consolidates after strongest week in two years

By Chibuike Oguh and Alden Bentley

NEW YORK (Reuters) -The U.S. dollar stalled near a seven-week high on Monday as investors reassessed their positions after last week's strong U.S. jobs data and as fears that Middle East tensions would spill into a wider conflict drove bids for safe havens.

The closely-watched jobs report for September showed the biggest jump in nonfarm payrolls in six months, a drop in the unemployment rate and solid wage rises, prompting markets to scale back bets on further hefty U.S. rate cuts.

Markets expect the Federal Reserve to cut rates by just 25 bps in November, rather than 50 bps, following the jobs data. According to CME's FedWatch tool, markets are pricing in a 85% chance of a quarter point cut, up from 47% a week ago, and a slim 0.15% prospect of no cut at all.

A rise in the yield on the benchmark U.S. 10-year note above 4% for the first time in two months was also a psychological support.

Against the Japanese yen, the dollar weakened after Atsushi Mimura, Japan's top currency diplomat, issued a warning against speculative moves on the foreign exchange market.

Dollar/yen fell 0.49% on the day to 147.98 after hitting its highest since August 15 at 149.10 overnight.

"The market got cautious as we approached 150 on the yen, but I don't think this is a big move yet," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

The dollar index measuring the greenback against a basket of six currencies slipped 0.07% to 102.46, having risen on Friday to 102.69, its highest level since mid August. The dollar logged a weekly gain of more than 2% last week, its biggest in two years.

In the Middle East, Hezbollah fired rockets at Israel's third largest city Haifa early on Monday as Israeli forces looked poised to expand ground incursions into southern Lebanon on the first anniversary of the Gaza war, which has spread conflict across the region.

The euro was off just 0.01% at $1.0975, feeling some pressure after German industrial orders fell significantly more than expected in August, adding to signs that manufacturing in Europe's largest economy remains in the doldrums.

Overall though the tone was still dollar-positive, along with currencies seen as flight-to-safety rivals on worries about the geopolitical picture.

"As you look across some of the more risk-sensitive currencies in the G10 space, you do have the dollar generally stronger, but a lot of the traditional safe havens -- yen, Swiss and the dollar -- are relative outperformers today," said Brian Daingerfield, foreign exchange strategist at NatWest Markets, New York.

"That does reflect equities turning a little bit lower here and oil prices having edged up further as the markets are watching very closely developments in the Middle East," he continued.

Against the Swiss franc, the dollar weakened 0.45% to 0.854.

The Canadian dollar weakened 0.37% versus the greenback to 1.36 per dollar.

Sterling fell 0.25% to $1.3083. Last week it recorded its biggest daily fall since April after Bank of England Governor Andrew Bailey was quoted as saying the central bank might move more aggressively to lower borrowing costs.

The Australian dollar weakened 0.6% versus the greenback and the kiwi weakened 0.63%.

In cryptocurrencies, bitcoin gained 1.49% to $63,334.40. Ethereum rose 1.13% to $2,456.20.

Currency bid prices at 7 October 03:26 p.m. EDT

Description RIC Last U.S. Close Previous Session Pct Change YTD Pct High Bid Low Bid

Dollar index 102.5 102.53 -0.03% 1.11% 102.62 102.36

Euro/Dollar 1.0971 1.0976 -0.05% -0.61% $1.0987 $1.0955

Dollar/Yen 148.08 148.775 -0.5% 4.96% 149.06 147.875

Euro/Yen 1.0971 163.16 -0.43% 4.39% 163.57 162.3

Dollar/Swiss 0.8543 0.8583 -0.47% 1.5% 0.8603 0.8535

Sterling/Dollar 1.308 1.3123 -0.32% 2.79% $1.3133 $1.306

Dollar/Canadian 1.3629 1.3578 0.39% 2.83% 1.364 1.3551

Aussie/Dollar 0.6751 0.6793 -0.63% -1% $0.681 $0.6744

Euro/Swiss 0.9373 0.9416 -0.46% 0.94% 0.9429 0.9366

Euro/Sterling 0.8386 0.8358 0.34% -3.28% 0.8399 0.8357

NZ Dollar/Dollar 0.6119 0.616 -0.63% -3.14% $0.6169 0.6113

Dollar/Norway 10.6456 10.6354 0.1% 5.04% 10.674 10.6128

Euro/Norway 11.6802 11.682 -0.02% 4.07% 11.7116 11.6454

Dollar/Sweden 10.3594 10.3681 -0.08% 2.9% 10.3822 10.3462

Euro/Sweden 11.3657 11.3789 -0.12% 2.16% 11.387 11.361

(Reporting by Chibuike Oguh in New York, Stefano Rebaudo and Vidya Ranganathan; Editing by Shri Navaratnam, Ed Osmond, Chizu Nomiyama, Christina Fincher and Anna Driver)

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:7 Oct 2024, 06:07 AM IST
Business NewsNewsDollar consolidates after strongest week in two years

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    149.70
    07:18 PM | 1 NOV 2024
    1.05 (0.71%)

    Indian Oil Corporation share price

    145.00
    07:19 PM | 1 NOV 2024
    2.3 (1.61%)

    Tata Power share price

    445.20
    07:19 PM | 1 NOV 2024
    5.15 (1.17%)

    Bandhan Bank share price

    183.65
    07:10 PM | 1 NOV 2024
    1.4 (0.77%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rainbow Childrens Medicare share price

    1,545.00
    06:59 PM | 1 NOV 2024
    -67.25 (-4.17%)

    ICICI Securities share price

    833.45
    06:59 PM | 1 NOV 2024
    -32.85 (-3.79%)

    Vijaya Diagnostic Centre share price

    966.70
    06:59 PM | 1 NOV 2024
    -30.35 (-3.04%)

    Narayana Hrudayalaya share price

    1,235.60
    06:59 PM | 1 NOV 2024
    -36.75 (-2.89%)
    More from Top Losers

    Brigade Enterprises share price

    1,244.80
    07:19 PM | 1 NOV 2024
    71.75 (6.12%)

    PCBL share price

    432.15
    07:17 PM | 1 NOV 2024
    21.35 (5.2%)

    Piramal Pharma share price

    281.85
    07:17 PM | 1 NOV 2024
    13.45 (5.01%)

    Jubilant Pharmova share price

    1,273.00
    06:59 PM | 1 NOV 2024
    60.65 (5%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,565.00-790.00
      Chennai
      80,571.00-790.00
      Delhi
      80,723.00-790.00
      Kolkata
      80,575.00-790.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L-0.06
      Chennai
      101.23/L0.43
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts