FOREX-Dollar higher as markets wait on stimulus news

  • Reuters
  • Forex News
FOREX-Dollar higher as markets wait on stimulus news
Credit: © Reuters.

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds details, updates prices; previous LONDON)

By Karen Brettell

NEW YORK, Oct 8 (Reuters) - The U.S. dollar edged higher against a basket of currencies on Thursday, but held in its recent range as investors waited for fresh news on whether new U.S. fiscal stimulus is likely in the near term.

The greenback has been whipsawed by swings in risk sentiment after U.S. President Donald Trump on Tuesday halted negotiations with Democrats on a new economic package but later pushed for the approval of more targeted stimulus bills to offset economic damage from the coronavirus.

There was little new information on Thursday to move the dollar strongly in either direction.

“We're just really consolidating, I think the market right now lacks near-term conviction, partly because of uncertainty about U.S. fiscal policy, and sensitivity to these U.S. presidential tweets,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “There's no new news to shake things up one way or another.”

The dollar index =USD gained 0.12% against a basket of major currencies to 93.73. It has fallen from a two-month high of 94.75 on Sept. 25.

The greenback was little changed against the Japanese yen JPY= at 105.97 yen, while the euro EUR= fell 0.17% to $1.1740.

The dollar index has also weakened in the past two weeks on bets that Democrat presidential candidate Joe Biden is more likely to win the Nov. 3 U.S. election, and that Democrats could also win the Senate.

A Democratic sweep would make larger fiscal stimulus more likely, which would weaken the U.S. currency.

"Overall, investors seem to be focusing more on the increasing odds of a Biden win and what that might imply for a stimulus package after the election," said Marshall Gittler, head of investment research at BDSwiss.

The New Zealand dollar NZD= dropped as much as half a percent after central bank officials again hinted that negative interest rates are possible. It was last down 0.06% at $0.6575. GBP= traded 0.10% lower at $1.2905 as uncertainty about Britain's exit from the European Union weighed on the currency.

Prime Minister Boris Johnson is prepared to fully leave the EU without a deal when the Brexit transition period ends, his spokesman said on Thursday, but the British leader still believes there is a deal to be done. bid prices at 9:35AM (1335 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1740

$1.1760

-0.17%

+4.73%

+1.1781

+1.1734 Dollar/Yen

JPY=

105.9700

105.9600

+0.01%

-2.65%

+106.1000 +105.9300 Euro/Yen

EURJPY=

124.43

124.63

-0.16%

+2.03%

+124.8700 +124.3800 Dollar/Swiss

CHF=

0.9193

0.9172

+0.23%

-5.01%

+0.9196

+0.9158 Sterling/Dollar GBP=

1.2905

1.2918

-0.10%

-2.67%

+1.2970

+1.2892 Dollar/Canadian CAD=

1.3238

1.3253

-0.11%

+1.94%

+1.3269

+1.3229 Australian/Doll AUD=

0.7157

0.7138

+0.27%

+1.94%

+0.7170

+0.7124 ar

Euro/Swiss

EURCHF=

1.0795

1.0789

+0.06%

-0.53%

+1.0800

+1.0782 Euro/Sterling

EURGBP=

0.9094

0.9102

-0.09%

+7.57%

+0.9123

+0.9071 NZ

NZD=

0.6575

0.6579

-0.06%

-2.39%

+0.6596

+0.6548 Dollar/Dollar

Dollar/Norway

NOK=

9.2636

9.3016

-0.41%

+5.53%

+9.3085

+9.2586 Euro/Norway

EURNOK=

10.8770

10.9430

-0.60%

+10.56%

+10.9588

+10.8788 Dollar/Sweden

SEK=

8.8728

8.8743

-0.32%

-5.08%

+8.8902

+8.8586 Euro/Sweden

EURSEK=

10.4178

10.4517

-0.32%

-0.49%

+10.4595

+10.4180

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