Dollar holds near month-long high with Fed, Evergrande eyeing

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NEW YORK (Reuters) – The US dollar held around unchanged near a one-month high as global markets rebounded somewhat on Tuesday after a risk mood dominated in the previous session, while as investors awaited the results of a two-day Federal Reserve policy meeting.

FILE PHOTO: A US dollar and a Chinese yuan can be seen in this illustration taken May 7, 2021. REUTERS / Dado Ruvic / Illustration

After hitting its highest level since August 23 on Monday, the dollar was down that day as Wall Street stocks braced for a solid open, but as benchmark stock index gains faded. , the greenback rose slightly.

Investors are also waiting for the Fed’s policy announcement on Wednesday for any sign of when the central bank will start cutting its massive bond purchase program, in a week filled with policy statements expected from a multitude of banks. plants around the world. .

“The market was trying to get a feel for Tuesday’s turnaround that would last, and if we had this continued improvement in risk appetite, the dollar was going to fall even further here,” said Edward Moya, senior market analyst. at OANDA in New York.

“But there’s just a lot of expectation of what’s going to happen with the Fed, what’s going to happen with Evergrande, and right now, if you’re trying to make a dollar bet, you really just want to wait. ” get a better idea of ​​what’s going to happen with Evergrande and what the Chinese government is going to do.

The dollar index rose 0.012% after peaking at 93.455, while the euro lost 0.01% to $ 1.1724.

The greenback strengthened on Monday, along with other safe havens such as the yen and Swiss franc, as concerns over the fallout from credit problems at property developer China Evergrande spooked financial markets.

Those concerns have eclipsed President Evergrande’s efforts to boost confidence in the struggling company on Tuesday, as Beijing showed no signs it would step in to stem the domino effects in the global economy.

The offshore Chinese yuan weakened against the greenback at 6.4849 per dollar.

Before the Evergrande debt crisis rattled markets, the dollar was supported ahead of a Federal Reserve meeting this week, when economists polled in a Reuters poll expect policymakers to point out the expectations of a reduction plan that would be postponed to November.

The Japanese yen strengthened 0.14% against the greenback to 109.21 per dollar, while the British pound last traded at $ 1.3646, down 0.08% on the day.

The Canadian dollar weakened for a fourth consecutive day against the greenback, after Canadian Prime Minister Justin Trudeau was re-elected for a third term but failed to secure a majority in the legislative elections.

In cryptocurrencies, Bitcoin last fell 1.53% to $ 42,378.52.

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Currency auction price at 10:51 am (1451 GMT)

Description RIC Last closure US Pct Change YTD Pct High Bid Low Bid

Previous modification

Session

Dollar index

93.2270 93.2310 + 0.01% 3.607% +93.2860 +93.0480

Euro dollar

$ 1.1724 $ 1.1728 -0.03% -4.04% + $ 1.1749 + $ 1.1717

Dollar / Yen

109.2250 109.3850 -0.14% + 5.72% +109.7050 +109.2100

Euro / yen

128.04 128.26 -0.17% + 0.88% +128.6900 +128.0400

Dollar / Switzerland

0.9225 0.9278 -0.56% + 4.28% +0.9283 +0.9225

Pound sterling / dollar

$ 1.3646 $ 1.3657 -0.06% -0.10% + $ 1.3692 + $ 1.3646

Canadian dollar

1.2844 1.2820 + 0.18% + 0.86% +1.2847 +1.2744

Australia / Dollar

$ 0.7229 $ 0.7253 -0.34% -6.03% + $ 0.7283 + $ 0.7228

Euro / Switzerland

1.0814 1.0879 -0.60% + 0.06% +1.0886 +1.0817

Euro / Pound

0.8588 0.8581 + 0.08% -3.91% +0.8592 +0.8564

New Zealand

Dollar / Dollar $ 0.6998 $ 0.7031 -0.47% -2.55% + $ 0.7056 + $ 0.6998

Dollar / Norway

8.6915 8.7365 -0.59% +1.14% +8.7105 +8.6560

Euro / Norway

10.1900 10.2420 -0.51% -2.65% + 10.2430 +10.1590

Dollar / Sweden

8.6743 8.6775 -0.03% + 5.84% + 8.6808 + 8.6536

Euro / Sweden

10.1700 10.1730 -0.03% + 0.93% +10.1792 +10.1550

Reporting by Chuck Mikolajczak; Editing by Andrea Ricci


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