Dollar hits one-month low against euro before US data, falls vs yen

Analysts noted that the dollar dropped on Tuesday after data showed an unexpected increase in U.S. producer prices in April, adding that the core services consumer price component of Wednesday's figures will be critical.

The U.S. dollar index - which measures the currency against six top rivals, but is heavily weighted towards the euro - eased 0.20 per cent to 104.80, its lowest level in 1-1/2 weeks. Higher-than-expected U.S. consumer prices in the first quarter of the year were the driving force for a sharp repricing of the pace of Fed rate cuts, with bets now pared back to about 44 basis points of reductions this year.

Deutsche Bank strategist Alan Ruskin noted rate path expectations would require more than a single modest upside or downside surprise to swing markets considerably. The dollar's surge to a 34-year peak of 160.245 yen on April 29 triggered two rounds of aggressive yen buying that traders and analysts suspect was the work of the BOJ and Japanese finance ministry .

The MoF may spend up to $300 billion in foreign exchange interventions, and the U.S. dollar would start correcting in the fourth quarter as the Fed starts cutting rates, he added.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Dollar/yen nosesdives again as market watches for BOJ interventionThe dollar tumbled against the yen late Wednesday afternoon, recoiling further from 34-year highs two days after traders said Japanese authorities were buying yen to support their currency, which had fallen 11 per cent this year.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Israeli war cabinet puts off third meeting on Iran's attack to WednesdayJERUSALEM — A third meeting of Israel's war cabinet set for Tuesday (April 16) to decide on a response to Iran's first-ever direct attack was put off until Wednesday, as Western allies eyed swift new sanctions against Tehran to help dissuade Israel from a major escalation.
Source: TODAYonline - 🏆 1. / 99 Read more »

Singapore shares opened higher on Wednesday—STI climbed 0.4%Straits Times Index (STI) climbed 11.38 points or 0.4% to 3,284.10
Source: IndependentSG - 🏆 9. / 63 Read more »

Singapore stocks started lower on Wednesday—STI dropped by 0.4%Straits Times Index (STI) dropped by 0.4% to 3,287.81
Source: IndependentSG - 🏆 9. / 63 Read more »

Billion-dollar money laundering case: Third man jailed for buying luxury apartment with illegal proceedsWang Baosen is the third to be sentenced for his role in Singapore's largest money-laundering probe, following Su Wenqiang and Su Haijin.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Billion-dollar money laundering case: Third accused gets jail for buying luxury apartment with illegal proceedsSINGAPORE — A third man linked to the S$3 billion money-laundering probe that led to the arrests of 10 people was sentenced to 13 months' jail on Tuesday (April 16).
Source: TODAYonline - 🏆 1. / 99 Read more »