Title: Dollar dips as traders focus on rate hike prospects elsewhere
Oct 25, 2021 03:55AM ET
The dollar fell back to a one-month low on Monday as dealers continued to focus on the possibility of higher financing costs and fixes outside of the United States.
Money markets were comprehensively tranquil toward the beginning of the week with dealers anticipating U.S. development information and national bank gatherings in the euro zone, Japan and Canada.
The dollar dropped to a one-month low in Asian hours after Federal Reserve Chair Jerome Powell said on Friday that now was not the time to start raising interest rates. The record had recuperated a portion of its misfortunes and was last down 0.1% at 93.542.
Backing for the U.S. dollar from higher U.S. yields has been hosed so far this month, both by the improvement in worldwide financial backers' confidence and by a comparative ascent in yields outside of the U.S. on normal in other G10 economies, said Lee Hardman, an expert at MUFG.
Powell's comments came as financial backers have estimated that Fed rate climbs begin in the second half of the following year and have started to manage long dollar positions in the expectation that other national banks could get rolling even sooner.
Despite the fact that swelling remains generally high, Thursday's GDP figures in the United States, in the event that they show a slower than-anticipated stoppage, could mitigate a portion of the Fed's tension.