Dollar nears two-decade peaks as problems plague euro, yen

28/4/2022 3:31:00 AM

Dollar nears two-decade peaks as problems plague euro, yen

Dollar nears two-decade peaks as problems plague euro, yen

SYDNEY : The dollar was nearing heights not seen in two decades on Thursday as the energy crisis in Europe hamstrung the euro, while the yen was undercut by expectations the Bank of Japan would stick to its super-easy policies.Measured against a basket of currencies, the dollar index had reached a five-y

SYDNEY : The dollar was nearing heights not seen in two decades on Thursday as the energy crisis in Europe hamstrung the euro, while the yen was undercut by expectations the Bank of Japan would stick to its super-easy policies.Measured against a basket of currencies, the dollar index had reached a five-year top of 103.28 and a further push above 103.82 would see it to levels not visited since late 2002.

The euro was pinned at $1.0553, having hit a five-year low of $1.0515 on Wednesday. The single currency has fallen 4.6 per cent so far in April and is heading for its worst month since early 2015.The currency is now perilously close to huge chart support levels stretching from $1.0500 down to a trough from 2017 at $1.0344. A break would take it to depths not seen since 2002 and risk a damaging decline below parity.

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LinkedIn SYDNEY : The dollar was nearing heights not seen in two decades on Thursday as the energy crisis in Europe hamstrung the euro, while the yen was undercut by expectations the Bank of Japan would stick to its super-easy policies.LinkedIn SINGAPORE : The dollar stood at its highest level since the early days of the pandemic on Wednesday and was heading for its best month since 2015, supported by the prospect of U.LinkedIn HONG KONG : The dollar climbed to around a two-year high against the euro and an 18-month high versus the pound as fears about the economic impact of China's COVID-19 lockdowns and an aggressive pace of U.LinkedIn KUALA LUMPUR — After hitting a five-year high last week, the Singapore dollar (SGD) on Monday (April 25) continued its upward trend against the Malaysian ringgit (MYR), hitting an all-time high of 3.

Measured against a basket of currencies, the dollar index had reached a five-year top of 103.28 and a further push above 103. rate hikes and on safe-haven flows fanned by slowing growth in China and Europe.82 would see it to levels not visited since late 2002. China's offshore yuan was steadier in early trading, however, at 6. The euro was pinned at $1.S.0553, having hit a five-year low of $1.1683 mark as of 4.

0515 on Wednesday.37, the strongest it has been since March 2020.609 per dollar on Monday, hurt by fears about China's economic growth. The single currency has fallen 4.6 per cent so far in April and is heading for its worst month since early 2015.0635 in early trade, a five-year trough, on fears for energy security and Europe's growth after Russia's Gazprom said it would halt gas supply to Poland and Bulgaria later in the day. The currency is now perilously close to huge chart support levels stretching from $1.58 per cent on Monday and hitting a two-year peak of 101.0500 down to a trough from 2017 at $1.6562 and the Australian dollar to a two-month low of $0. On April 17, 2022, that number rose to 3.

0344. A break would take it to depths not seen since 2002 and risk a damaging decline below parity. The Aussie was steady in early trade ahead of inflation data due at 0130 GMT.3 per cent so far this month, which would be its largest month of gains since November 2015. The slide only adds to Europe's economic troubles as it raises the cost of energy priced in dollars, just as natural gas costs soar on Russia's move to cut off Poland and Bulgaria. "This appears to be the first overt act of energy warfare," warned Helima Croft, head of global commodity research at RBC Capital Markets. "The dollar is 'quality carry,'" they added. "The question now is whether the cut-off will extend to other major importers in what could quickly become a stark test of European resolve to support Ukraine in the face of surging energy prices and rising recession risks. China's financial hub of Shanghai has now been under strict lockdown to fight COVID for around a month, and a Beijing official said late on Monday that a mass-testing campaign there will be expanded from the city's most populous district to another 10 districts and one economic development area.3490 from the previous close at 4.

" Such risks could also make the European Central Bank reluctant to tighten aggressively, leaving it lagging far behind the Federal Reserve." Still, safety flows have also supported the yen, which lifted away from recent lows to a one-week high of 126. Markets are wagering the Fed will hike by 50 basis points in May, June and July, and ultimately lift rates to around 3.0 per cent by the end of the year. The Bank of Japan meets on Wednesday and Thursday and markets see some risk of adjustment to forecasts or even policy changes to try and arrest the yen's recent tumble.S. The ECB is seen maybe reaching 0.5 per cent by Christmas. The Chinese yuan, down more than 3.

The Bank of Japan (BOJ) is not even close to tightening as it doggedly buys bonds to keep yields near zero.S. The central bank holds a policy meeting on Thursday and is widely expected to reaffirm its yield guidance, even as it raises the outlook for inflation.5902 per dollar in offshore trade. The diverging outlook on rates has seen the dollar resume its climb on the yen to reach 128.44 too be within spitting distance of its recent 20-year peak of 129. Sterling, which has dropped more than 2 per cent on the dollar this week as soft retail sales data has prompted a re-think of Britain's rates outlook, hit a fresh 21-month low of $1.0723 a fraction above the overnight low of $1.43.

One possible pot hole for the dollar will be data on U. Bitcoin, sold overnight as investors dumped risky assets, hovered near a six-week low at $38,228.S.2744, having hit its lowest since September 2020 overnight. gross domestic product due later Thursday. While the market forecast is for growth of 1.1 per cent, the risk is to the downside after the U. futures market data show that funds have amassed their biggest wager against the pound since October 2019, a bet now worth close to $5 billion.

S. trade deficit blew out to a record and implied a large drag from net exports. Analysts at NatWest Markets now fear GDP may have actually contracted by an annualised 1. The dollar did fall 0.3 per cent in the first quarter. Any negative reading could temper the dollar's ascent, if only temporarily.

Source: Reuters . The Japanese currency has managed a very slight recovery this week from last week's 20-year low of 129.