Dollar slips after recent gains, recent uptrend intact

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NEW YORK — The dollar fell from a

seven-week high on Monday, tracking a slide in U.S. Treasury

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yields, as investors consolidated gains after the greenback’s

recent rise and looked ahead for the release of jobs data and

consumer prices for February.

The dollar’s decline was exacerbated by a

higher-than-expected drop in U.S. durable goods of 4.5% last

month, reversing a huge December boost from Boeing. These

so-called durable goods orders increased 5.1% in December.

The report dented some of the hawkishness built into U.S.

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interest rates, though they are expected to remain higher for

longer, analysts said.

With February coming to an end after the dollar’s almost 3%

climb during the month on stronger-than-expected U.S. economic

data, investors are consolidating recent positions, said Joe

Manimbo, senior market analyst at Convera in Washington.

“It’s just investors pulling some chips off the table,” he

said. “We’ve had a ton of data so far, and so far it’s been

hotter than expected and that’s been the fuel for the dollar.”

The market awaits this month’s data for U.S. unemployment on

March 10 and the consumer price index on March 14, both of which

will influence Federal Reserve policy on interest rates and the

central bank’s efforts to slow inflation to its target pace.

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“Until the market gets a look at the next non-farm payrolls

as well as the next consumer price index, the market is going to

be reluctant to push the dollar meaningful lower,” Manimbo said.

“The market is just realizing the road to 2% inflation is likely

to be longer and more winding.”

Investors will get more information on the state of the

global economy this week, with U.S. ISM manufacturing and

services survey data for February due on Wednesday and Friday,

respectively. Preliminary euro zone CPI inflation figures for

February are due on Thursday.

New data on Monday that showed U.S. pending home sales

posted their largest gain in 2-1/2 years failed to lift the

dollar, as recent strong economic readings have done.

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The National Association of Realtors (NAR) said its Pending

Home Sales Index, based on signed contracts, jumped 8.1% last

month, the biggest increase since June 2020. Economists polled

by Reuters had forecast contracts, which become sales after a

month or two, rising 1.0%.

Traders now expect the Fed to raise interest rates to about

5.4% in July, according to pricing in futures markets

. At the beginning of February, they envisaged rates

rising to a peak of just 4.9%.

The dollar index, which measures the currency against

six major peers, fell 0.513% and is on track to snap a

four-month losing streak. Earlier it hit its highest since Jan.


The euro rose 0.58% to $1.0607, while the Japanese

yen strengthened 0.20% versus the greenback at 136.20. The yen

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reversed some of its gains after rising to a more than two-month

high of 136.54 earlier in the session.

Incoming Bank of Japan Governor Kazuo Ueda said on Monday

the merits of the bank’s current monetary policy outweigh the

costs, stressing the need to maintain support for the Japanese

economy with ultra-low interest rates.

Sterling rose after British Prime Minister Rishi Sunak

struck a new deal with the European Union on post-Brexit trade

rules for Northern Ireland on Monday and said it would pave the

way for a new chapter in London’s relationship with the bloc.

The pound was last at $1.2059, up 0.96% on the day.

Currency bid prices at 2:40 p.m. (1940 GMT)

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

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Previous Change


Dollar index 104.6300 105.1800 -0.50% 1.102% +105.3600 +104.5400

Euro/Dollar $1.0609 $1.0545 +0.63% -0.98% +$1.0620 +$1.0533

Dollar/Yen 136.2000 136.5250 -0.24% +3.88% +136.5400 +135.9100

Euro/Yen 144.48 143.93 +0.38% +2.99% +144.5100 +143.5800

Dollar/Swiss 0.9357 0.9411 -0.57% +1.20% +0.9428 +0.9347

Sterling/Dollar $1.2059 $1.1940 +1.01% -0.27% +$1.2065 +$1.1923

Dollar/Canadian 1.3572 1.3608 -0.27% +0.16% +1.3680 +1.3534

Aussie/Dollar $0.6740 $0.6726 +0.25% -1.08% +$0.6745 +$0.6699

Euro/Swiss 0.9925 0.9922 +0.03% +0.32% +0.9946 +0.9913

Euro/Sterling 0.8796 0.8828 -0.36% -0.54% +0.8835 +0.8790

NZ $0.6170 $0.6164 +0.13% -2.80% +$0.6180 +$0.6132


Dollar/Norway 10.3370 10.3890 -0.38% +5.46% +10.4270 +10.3500

Euro/Norway 10.9652 10.9527 +0.11% +4.54% +10.9970 +10.9309

Dollar/Sweden 10.3967 10.4965 -0.42% -0.10% +10.5171 +10.3890

Euro/Sweden 11.0258 11.0725 -0.42% -1.11% +11.0870 +11.0266

(Reporting by Herbert Lash, additional reporting by Harry

Robertson in London and Gertrude Chavez-Dreyfuss in New York;

Additional reporting by Ankur Banerjee in Singapore; Editing by

Ed Osmond and Angus MacSwan)


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