U.S. Dollar Dive to 5-Month Low, Aussie Bounces Back on Jobs
April 10, 2014 5:54 am
The dollar slide lower to a five-month low against a basket of counterparts before a Federal Reserve policy maker speaks after central-bank minutes diminish prospects for a hike in interest rates. Australia’s dollar bounced back.
The U.S. currency reached a two-week low against the euro after minutes of the March policy assembly yesterday displayed the Fed played down projections by some of its own policy makers that rates might advance at a more rapid pace than they previously guesstimated. The Aussie advanced to a more than four-month high after employers increased more than seven times the projection for jobs development. New Zealand’s dollar reached its topmost performing position since 2011.
“The dollar is weak,” said Koji Iwata, the New York-based vice president of foreign-exchange trading at Mizuho Bank Ltd., a unit of Japan’s third-biggest financial group by market value. “The FOMC minutes are dovish. We thought rate hikes would come sooner, but these expectations have receded.”
The Bloomberg Dollar Spot Index, which records the greenback versus 10 major counterparts, was slightly altered at 1,005.55 as of 11:32 a.m. in Tokyo. It earlier achieved 1,004.70, the lowest mark since October 30.
The dollar exchanged at $1.3849 per euro from $1.3855 yesterday and touched $1.3871, the weakest since March 24. It exchanged at 101.89 yen from 102. Japan’s currency was at 141.11 per euro after sliding down 0.6 percent to 141.32 yesterday.
Fed Minutes
“Several participants noted that the increase in the median projection overstated the shift in the projections,” the minutes of the March 18-19 Federal Open Market Committee meeting revealed. Some disclosed concern the rate forecasts “could be misconstrued as indicating a move by the committee to a less accommodative reaction function.”
The Bloomberg Dollar Spot Index bolstered 0.8 percent after Fed Chair Janet Yellen declared following the assembly that the bank may begin to boost interest rates “around six months” after finalizing its asset-purchasing program. The U.S. central bank trim monthly bond purchases by $10 billion to $55 billion.
The Fed is tapering stimulus it has utilized to aid the economy, while maintaining its goal for overnight lending between banks in a range of zero to 0.25 percent since 2008.
Chicago Fed President Charles Evans will join in a panel discussion in Washington today.
“In the current circumstances, accountability and optimal policy mean we should be maintaining a large degree of accommodation for some time,” Evans said yesterday.
Aussie Advances
Australia’s dollar bolstered as high as 94.40 U.S. cents, the best number since November 20, and exchanged 0.3 percent greater at 94.17. The nation’s statistics bureau announced that employers provided an extra 18,100 jobs compared with the projected for 2,500 additions. The unemployment rate slumped to 5.8 percent, the weakest performing mark since November and the first drop in six months.
“The unemployment rate is really key here, and the employment growth figure was solid as well,” said Greg Gibbs, the Singapore-based head of Asia Pacific markets strategy at Royal Bank of Scotland Group Plc. “Clearly the Australian dollar has benefited from that.”
The New Zealand dollar reached 87.46 U.S. cents, the peak level since August 2011, before exchanging with a slight alteration at 87.16. The nation’s manufacturing progressed last month to the topmost level since July, based from the Performance of Manufacturing Index recorded by the Bank of New Zealand Ltd. and Business NZ.
The Australian and New Zealand dollars trimmed down advances after data from China showed imports and exports surprisingly sagged down in March from last year.
The material has been provided by InstaForex Company – www.instaforex.com
The dollar slide lower to a five-month low against a basket of counterparts before a Federal Reserve policy maker speaks after central-bank minutes diminish prospects for a hike in interest rates. Australia’s dollar bounced back.
The U.S. currency reached a two-week low against the euro after minutes of the March policy assembly yesterday displayed the Fed played down projections by some of its own policy makers that rates might advance at a more rapid pace than they previously guesstimated. The Aussie advanced to a more than four-month high after employers increased more than seven times the projection for jobs development. New Zealand’s dollar reached its topmost performing position since 2011.
“The dollar is weak,” said Koji Iwata, the New York-based vice president of foreign-exchange trading at Mizuho Bank Ltd., a unit of Japan’s third-biggest financial group by market value. “The FOMC minutes are dovish. We thought rate hikes would come sooner, but these expectations have receded.”
The Bloomberg Dollar Spot Index, which records the greenback versus 10 major counterparts, was slightly altered at 1,005.55 as of 11:32 a.m. in Tokyo. It earlier achieved 1,004.70, the lowest mark since October 30.
The dollar exchanged at $1.3849 per euro from $1.3855 yesterday and touched $1.3871, the weakest since March 24. It exchanged at 101.89 yen from 102. Japan’s currency was at 141.11 per euro after sliding down 0.6 percent to 141.32 yesterday.
Fed Minutes
“Several participants noted that the increase in the median projection overstated the shift in the projections,” the minutes of the March 18-19 Federal Open Market Committee meeting revealed. Some disclosed concern the rate forecasts “could be misconstrued as indicating a move by the committee to a less accommodative reaction function.”
The Bloomberg Dollar Spot Index bolstered 0.8 percent after Fed Chair Janet Yellen declared following the assembly that the bank may begin to boost interest rates “around six months” after finalizing its asset-purchasing program. The U.S. central bank trim monthly bond purchases by $10 billion to $55 billion.
The Fed is tapering stimulus it has utilized to aid the economy, while maintaining its goal for overnight lending between banks in a range of zero to 0.25 percent since 2008.
Chicago Fed President Charles Evans will join in a panel discussion in Washington today.
“In the current circumstances, accountability and optimal policy mean we should be maintaining a large degree of accommodation for some time,” Evans said yesterday.
Aussie Advances
Australia’s dollar bolstered as high as 94.40 U.S. cents, the best number since November 20, and exchanged 0.3 percent greater at 94.17. The nation’s statistics bureau announced that employers provided an extra 18,100 jobs compared with the projected for 2,500 additions. The unemployment rate slumped to 5.8 percent, the weakest performing mark since November and the first drop in six months.
“The unemployment rate is really key here, and the employment growth figure was solid as well,” said Greg Gibbs, the Singapore-based head of Asia Pacific markets strategy at Royal Bank of Scotland Group Plc. “Clearly the Australian dollar has benefited from that.”
The New Zealand dollar reached 87.46 U.S. cents, the peak level since August 2011, before exchanging with a slight alteration at 87.16. The nation’s manufacturing progressed last month to the topmost level since July, based from the Performance of Manufacturing Index recorded by the Bank of New Zealand Ltd. and Business NZ.
The Australian and New Zealand dollars trimmed down advances after data from China showed imports and exports surprisingly sagged down in March from last year.
The material has been provided by InstaForex Company – www.instaforex.com
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