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The
dollar softened in Asia Wednesday on expectations that the US Federal
Reserve will delay an interest rate hike following fresh data pointing
to slowing growth in the world's biggest economy, analysts said.
The
greenback fell to 118.83 yen in mid-morning trade from 118.88 yen in
New York and sharply lower than the 119.10 yen earlier Tuesday in Asia.
And
while the euro edged down to $1.0969 and $130.33 from $1.0981 and
130.55 yen in US trade, it is well up from $1.0880 and 129.54 yen
earlier Tuesday.
The
Fed's policy-setting committee ends a two-day meeting later Wednesday
and traders are betting on a rate hike being put back, while also
looking for some guidance about its intentions later in the year.
The
central bank had previously signalled a possible hike in June, but
analysts now expect it in September at the earliest following a spate of
soft readings.
The
latest came Tuesday as the Conference Board reported its index of
consumer confidence tumbled in March, instead of rising as expected.
Consumers reported growing pessimism about current and short-term US
economic conditions.
'Expectations
for tonight's ... decision have now changed significantly, with traders
now expecting interest rate lift-off to be pushed out from June to
September at least, sending the US dollar into reverse,' said Nicholas
Teo, market analyst at CMC Markets in Singapore.
'The
oil crash, slower overseas economies and a higher (dollar) have made it
increasingly difficult for the US to defy gravity,' he added.
Also
in focus is the government's first estimate of US first-quarter
economic growth, with analysts predicting a 1.0 percent rate, down from
2.2 percent in the previous three months.
Source : AFP
 The dollar softened in Asia Wednesday
on expectations that the US Federal Reserve will delay an interest rate
hike following fresh data pointing to slowing growth in the world's
biggest economy, analysts said.
The greenback fell to 118.83 yen in
mid-morning trade from 118.88 yen in New York and sharply lower than the
119.10 yen earlier Tuesday in Asia.
And while the euro edged down to
$1.0969 and $130.33 from $1.0981 and 130.55 yen in US trade, it is well
up from $1.0880 and 129.54 yen earlier Tuesday.
The Fed's policy-setting committee
ends a two-day meeting later Wednesday and traders are betting on a rate
hike being put back, while also looking for some guidance about its
intentions later in the year.
The central bank had previously
signalled a possible hike in June, but analysts now expect it in
September at the earliest following a spate of soft readings.
The latest came Tuesday as the
Conference Board reported its index of consumer confidence tumbled in
March, instead of rising as expected. Consumers reported growing
pessimism about current and short-term US economic conditions.
'Expectations for tonight's ...
decision have now changed significantly, with traders now expecting
interest rate lift-off to be pushed out from June to September at least,
sending the US dollar into reverse,' said Nicholas Teo, market analyst
at CMC Markets in Singapore.
'The oil crash, slower overseas
economies and a higher (dollar) have made it increasingly difficult for
the US to defy gravity,' he added.
Also in focus is the government's
first estimate of US first-quarter economic growth, with analysts
predicting a 1.0 percent rate, down from 2.2 percent in the previous
three months.
Source : AFP
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