Dollar Gains Against Peers on US-China Trade Talks
The dollar strengthened against most Group-of-10 peers on hopes that US-China trade talks would help ease trade tensions and bolster their economies.
The Bloomberg Dollar Spot Index rebounded 0.3% after falling in the last three sessions. The yen and Swiss franc lagged behind other G-10 currencies
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are set to hold trade talks with China’s Vice Premier He Lifeng in Switzerland later this week
“The US-China headlines helped to stabilize sentiment,” leading to unwinding of long positions in the yen and Swiss franc, said Christopher Wong, a foreign-exchange strategist at Oversea-Chinese Banking Corp.
The Treasury 10-year yield added 2 basis points to 4.32% while S&P 500 futures gained 0.5%
The Federal Reserve will conclude a two-day policy meeting later Wednesday, where the central bank is expected to leave the benchmark interest rate unchanged
Fed Chair Jerome Powell is expected to strike a decisively hawkish tone at the news conference, Bloomberg Economics’ Anna Wong wrote in a note
AUD/USD dipped 0.1% to 0.6486 after rising as much as 0.3% earlier
Australia’s dollar flipped to a loss as the announcement of monetary stimulus from China’s central bank weighed on the offshore yuan
USD/CNH edged 0.2% higher to 7.2216
China’s central bank reduced its policy rate and the amount of cash lenders must keep in reserve to support the economy
“China’s strategy continues to be one where policy makers are looking to ensure a severe downturn is prevented, but there remains no appetite to properly stimulate the economy and quickly solve the housing crisis,” said Rodrigo Catril, a senior foreign-exchange strategist at National Australia Bank in Sydney
USD/JPY gained 0.5% to 143.18 as Japan’s markets reopened after a four-day weekend
USD/CHF advanced 0.4% to 0.8251 after falling for three straight sessions
EUR/USD dipped 0.1% to 1.1355, with investors watching eurozone retail sales data later in the day
GBP/USD slipped 0.1% to 1.3353
Source : Bloomberg
