x
Breaking News
0

FOREX-Dollar steadies near 6-week low as Fed rate outlook continues to weigh

ForexMar 21, 2017 01:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FOREX-Dollar steadies near 6-week low as Fed rate outlook continues to weigh

* G20 communique adds to protectionist worries

* Fed on track to raise rates twice more in 2017-Evans (Adds comment, updates prices)

By Saqib Iqbal Ahmed

NEW YORK, March 20 (Reuters) - The dollar hovered near a six-week low against a basket of currencies on Monday, weighed down by last week's interest-rate guidance from the U.S. Federal Reserve that was less "hawkish" than many had expected.

The greenback has been on the retreat since the Fed on Wednesday raised interest rates but stopped short of predicting a sharper pace of monetary policy tightening over the next two years. follow-through and a hangover from last week - the concept of a dovish Fed," said Brad Bechtel, managing director at Jefferies in New York.

"Even though they hiked (rates), the perception was that they were mildly dovish. We are seeing continuing dollar sluggishness on the back of that," he said.

Group of 20 financial leaders at a meeting expressed renewed concern about the United States' global trade relations and by implication the Trump administration's concern over the strong dollar. post-meeting communique retained language on avoiding currency manipulation, which has previously seemed aimed chiefly at Japan and China, but it omitted a call for free trade seen as opening the door to more overt efforts by Washington to shift the balance of its international relationships.

The dollar index .DXY fell by as much as 0.3 percent in Asian and early European trading before reversing losses to trade up 0.1 percent on the day at 100.40.

Public comments from Chicago Fed President Charles Evans who said Federal Reserve was on track to raising interest rates twice more this year, likely helped the greenback rebound, analysts said. think markets are focused on comments made by FOMC members to get a better idea of the path forward for policy and how that will translate for the dollar," said Sireen Harajli, FX strategist at Mizuho in New York.

Meanwhile, sterling fell from a three-week high against the dollar on news that Prime Minister Theresa May would trigger Britain's divorce proceedings with the European Union on March 29, launching two years of negotiations. pound GBP= , which had been up as much as a third of a percent against the dollar in London morning trade, reversed course, falling as low as $1.2336 following the statement, down 0.45 percent on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic: World FX rates in 2017

http://tmsnrt.rs/2egbfVh

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

FOREX-Dollar steadies near 6-week low as Fed rate outlook continues to weigh
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email