Dollar Steady as US Stocks Extend Drop, Yields Fall
A Bloomberg gauge of the dollar steadied as Treasury yields slid and US equities sold off at the cash open in New York. The pound and gilts dropped as speculation about the UK budget heightened uncertainty over the nation’s fiscal position, while the haven Swiss franc and yen outperformed among the Group of 10.
The Bloomberg Dollar Spot Index is little changed, swinging between gains and losses; measure heads for two weeks of losses for first time since August.
“A global rout in risky assets looks set to extend into a third day as investors turn more sceptical on artificial intelligence spending and pull back on expectations for a rate cut at the Federal Reserve’s December meeting,” Karl Schamotta, chief market strategist at Corpay, wrote Friday.
EUR/GBP rallies as much as 0.5% to 0.8865, the strongest since April 2023, before paring gains.
USD/JPY down 0.2% to 154.23; USD/CHF falls 0.3% to 0.7908 as risk-off tone boosts havens
Swiss franc rallies to a decade-high versus euro as inflation dynamics and the prospects of the US trade deal support currency; EUR/CHF down 0.5% to 0.91796 low, weakest since January 2015.
EUR/USD down 0.1% to 1.1621; the currency pair still set to gain 0.5% on a weekly basis, the most in three months.
Source: Bloomberg.com
