قالب وردپرس درنا توس
Home / Business / Dollar occurs water as key meeting of central banks

Dollar occurs water as key meeting of central banks



TOKYO (Reuters) – The Dollar plummeted against the peer group on Monday as market participants expected key central bank meetings this week to set the short-term currency exchange rate.

A US Dollar Note can be seen in this image photo from June 22, 2017. REUTERS / Thomas White / Illustration

The focus of central banks is on the Bank of Japan, which concludes a two-day meeting on Tuesday, and the Federal Reserve, which concludes its monetary policy meeting on Wednesday. The Bank of England will also make a landmark decision on Thursday.

The dollar index against a basket of six major currencies had barely changed after a slight decline on Friday at 94,662.XXY. Positive US GDP data in the second quarter did not support the greenback, as markets had mostly priced in strong numbers.

The US currency was 0.05 percent lower at JPY 1

10,970 yen after a loss of about 0.2 percent on Friday.

Masafumi Yamamoto, senior forex strategist at Mizuho Securities in Tokyo, said investors would be more interested in US GDP data, which includes July, when tariffs on Chinese goods were capitalized.

"On the other hand, the two-year Treasury yield is rising, underscoring the strong rate hike expectations in the market, which limits the dollar's losses, although the move ahead of the BOJ meeting is likely to be limited," Yamamoto said.

The two-year Treasury yield US2YT = RR rose towards the end of last week to a decade high of 2.69.

Financial markets are eager to see if the BOJ is taking steps to make its massive economic stimulus plan more sustainable.

The Euro climbed 0.05% to € 1,1659 =, extending Friday's modest gains.

The pound was $ 1.3110 GBP = D3.

Sterling announced its third weekly loss last week, hampered by concerns over the progress of the Brexit talks. There will be some relief on Thursday as it is expected that the BoE will raise interest rates only for the second time since the 2008 financial crisis.

The Australian dollar fell 0.05 percent to AUD $ 0.7398, cutting some of its gains after rising 0.4 percent on Friday.

Our Standards: The Thomson Reuters Trust Principles.

Source link