Dollar Edges Higher on Rating Affirmation
The dollar rose against most of its Group-of-10 peers after S&P Global Ratings affirmed its ‘AA+/A-1+’ sovereign credit ratings for the US.
The Bloomberg Dollar Spot Index extended gains for a second day, rising 0.1%, as market focus shifts to Fed chair Powell’s speech at Jackson Hole on Friday.
Traders are looking for hints of a dovish tilt to solidify bets that the central bank will move borrowing costs lower by at least a quarter point in September.
Treasuries eased slightly across the curve with 10-year up one basis point to 4.34%.
AUD/USD steady at 0.6489.
Australia’s dollar traded mostly in positive territory (intraday) after data show consumer confidence in the nation jumped to its highest since Feb. 2022.
EUR/USD eased 0.1% to 1.1651; USD/CAD added 0.1% to 1.3813.
“The lack of market reaction may reflect low expectations for a resolution of the Russia-Ukraine war,” said Carol Kong, strategist at Commonwealth Bank of Australia. “Currencies are primarily driven by the US macro story at the moment with markets laser-focused on Chair Powell’s Jackson Hole speech”.
Source: Bloomberg
