Dollar resumes upward March on higher yields; yen falls again

Asia's Tech News Daily

#Business, #Japenese Yen, #US dollar, #World News

Representative image

The U.S. dollar gained broadly on Monday, rebounding towards a one-year high hit last week as slowing economic growth in China and firmer U.S. Treasury yields boosted the appeal of the greenback with the Japanese yen among the major losers.

Three data points over the weekend, namely strong inflation data in New Zealand, hawkish comments from the Bank of England and slowing growth in China has reaffirmed the broad theme of rising inflation and slowing growth in global markets.

Investors have chosen to trade that theme by buying the greenback against its rivals while simultaneously dumping currencies of commodity importers like Japan.

Latest weekly positioning data in currency markets showed hedge funds have ramped up their net bearish bets on the Japanese yen to their biggest levels since May 2019 while increasing their bullish bets on the greenback.

“Higher Treasury yields combined with China’s weak GDP numbers are spurring demand for the U.S. dollar and other safe haven currencies on Monday,” said Raffi Boyadjian, an investment strategist at brokerage XM.

U.S. Treasury yields firmed on Monday, extending a trend in recent weeks with five-year bond yields rising to their highest levels since February 2020 as investors ramped up bets that the U.S. Federal Reserve was preparing to raise interest rates as early as next year.

The inflation outlook has also prompted expectations of earlier tightening of global monetary policy, with Danske Bank expecting as much as two rate hikes from the Fed in the second half of next year.

“For some time our central argument has rested on two factors coming together to support the dollar, namely the moderation in global growth and the Fed taking a gradual path towards eventual rate hikes,” HSBC analysts said in a note. “This occurred sooner than we expected.”

The dollar index rose 0.1% to 94.05, edging it back toward last week’s one-year high of 94.563 which was the highest level since September 2020.

The yen was close to a new three-year low, with the dollar last up 0.1% at 114.36 yen, close to Friday’s 114.47 level that was last hit in October 2018.

In New Zealand, where consumer prices zoomed higher at their fastest clip since 2010, analysts said the central bank would need to stay the course on its hiking trajectory even as the lockdown of Auckland was extended.

The kiwi jumped almost 0.5% to a one-month high of $0.7105 before easing back to trade down 0.2% at $0.7056 after a decade-high quarterly inflation reading.

Sterling slipped 0.1% to $1.3735 despite hawkish weekend remarks from Bank of England Governor Andrew Bailey who said policymakers “will have to act” as energy prices drive consumer prices higher.

In other data highlights, China’s economic growth hit its slowest pace in a year in the third quarter, with power shortages crimping factory output – while in commodities, crude prices rose more than 1% to test 2018 highs.

The yuan eased slightly after the data. But taken together, China’s slowdown, power crunch and worldwide signs that pressure from energy costs is hurting, seemed to turn investors broadly cautious as they brace for a bumpy period.

In cryptocurrencies, bitcoin, riding high on hopes for U.S. approval of a futures-based exchange traded fund that would funnel cash into the sector, hovered just shy of its record peak of $64,895. It last bought $60,956.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

JPMorgan says buy the dip as Omicron may signal pandemic ending

SINGAPORE (BLOOMBERG) – The recent market turmoil caused by the emergence of the Omicron virus strain may offer investors a chance to position for a trend reversal in reopening and ... Read more »

Christmas shoppers warned about fake online reviews - here's how to protect yourself

The Competition and Markets Authority (CMA) is leading an investigation into fake reviews, which includes a formal probe into Amazon and Google over concerns they have not been doing enough to combat false write-ups left on their sites. Read more »

Apple tells suppliers demand for iPhone 13 line-up has weakened

TAIPEI (BLOOMBERG) – Apple, suffering from a global supply crunch, is now confronting a different problem: slowing demand. The company has told its component suppliers that demand for the iPhone ... Read more »

Daily Voice | What makes banking and financials, realty and allied sectors interesting, shares Mahesh Patil of Aditya Birla Sun Life AMC

The equity market is meant for long-haul investments because of its characteristic volatility. A correction of 10-12 percent that the market has witnessed through the last week, however, offers a ... Read more »

Hong Kong stocks rise amid hopes of the city's borders reopening with mainland China

Hong Kong stocks rose for a second straight day on expectations of the much-awaited border reopening with mainland China, even as sentiment elsewhere has been affected by the new Omicron ... Read more »

General Atlantic appoints Mastercard's Ajay Banga as Vice Chairman

Ajaypal Singh Banga (Image: Reuters) Global growth equity giant General Atlantic has announced the appointment of former Mastercard CEO Ajay Banga as Vice Chairman. Banga will advise on strategic matters ... Read more »

Novavax COVID jab manufacturer reveals £400m Teesside plant expansion

Fujifilm Diosynth Biotechnologies sees up to 350 jobs being created at the facility in Billingham, in an announcement hailed by the prime minister as a significant investment. Read more »

Asia shares in choppy trade as Omicron worries leave markets on edge; STI down 0.3%

Japan’s Nikkei lost 0.6 per cent. HONG KONG (REUTERS) – Asian stocks were mixed in choppy trading on Thursday (Dec 2) after a sharp reversal on Wall Street on concerns ... Read more »

Cryptocurrency Prices today on December 2: Bitcoin, Ethereum, Binance Coin, XRP fall while Solana rises

The global crypto market capitalisation declined 0.63 percent over the last 24 hours to stand at $2.63 trillion. Bitcoin, currently trading at $57,157.85 saw a surge in its market dominance ... Read more »

Exclusive: Swiggy, Meesho backer Elevation Capital eyes $600 million fund

Representative image. Elevation Capital, an early investor in Swiggy, Paytm and Meesho, is said to be in talks to raise $600 million, barely a year after its last fund, to ... Read more »

Tinder owner to pay founders $441m to settle valuation lawsuit

Tinder’s owner is paying the app’s founders millions to settle a lawsuit. NEW YORK: The company that owns Tinder will pay $441 million to the popular dating app's founders to ... Read more »

Macau casino junket operator Suncity sinks further after Alvin Chau steps down as chairman

Shares of Suncity Group Holdings, Macau’s largest casino junket operator, fell 16.7 per cent on Thursday after its controlling shareholder Alvin Chau Cheok-wa stepped down as chairman. Chau was arrested ... Read more »

New Zealand milk production up but cow numbers fall

Cows in New Zealand’s $37 billion dairy industry produced record milk volumes last season despite a fall in their numbers. The latest annual NZ Dairy Statistics report from industry good ... Read more »

Hot Stocks | Bet on Bajaj Holdings, Union Bank of India for up to 17% return in short term

Rohan Patil, Research Analyst at Bonanza Portfolio The benchmark Nifty50 index witnessed a gap-up opening and traded above 17,080 for a major part of the day on December 1. It finally managed ... Read more »

Trade Spotlight | What should you do now with IndusInd Bank, Chambal Fertilisers, Texmo Pipes, & BSE?

Positive global cues and domestic economic data have helped the market rebound sharply. The BSE Sensex rallied more than 600 points to 57,685, and the Nifty50 climbed 184 points to ... Read more »

CBS: CO2 emissions from biomass increase by 16 percent

The CO2 emissions caused by biomass increased by 16 percent in 2020, according to figures from Statistics Netherlands (CBS). The increase is mainly due to the fact that power plants ... Read more »

Become globally recognized: Steps to take your business global

Every business wants to become the next Amazon. It's a beautiful dream to have – to go global and have your brand name plastered in every major city in the ... Read more »

Debt collectors OK'd to use social media to reach borrowers

There are strict guidelines governing how a collector can reach out on platforms like Facebook, Instagram and Twitter, according to the Consumer Financial Protection Bureau. Read more »

Sembcorp taking 35% stake in Chinese renewable energy company for $320m

SINGAPORE (THE BUSINESS TIMES) – Sembcorp Industries is acquiring a 35 per cent interest in SDIC New Energy, a power company in China with a portfolio of 30 operational wind ... Read more »

Cramer's lightning round: Buy Canadian Pacific if you believe in economic recovery

Carnival Corp.: “No, too early, too early. The one is Norwegian. That's the one that's got the best balance sheet, and the best situation, then maybe we can go down ... Read more »

Kaisa to meet offshore bondholders over repayment options, including notes that can be swapped with Sing Tao stock

Embattled Chinese developer Kaisa Group Holdings has agreed to meet its offshore bondholders and discuss ways of repaying loans, including selling convertible bonds that can be exchanged for shares of ... Read more »

Asia-Pacific stocks fall as omicron variant fears continue to weigh on market sentiment

SINGAPORE — Stocks in Asia-Pacific fell in Thursday morning trade, as concerns over the economic impact of the omicron Covid variant continues to weigh on investor sentiment. The Nikkei 225 ... Read more »

Charts suggest stocks may fall further before powerful Santa Claus rally kicks in, Cramer says

There could be more near-term pain for the stock market before it reverses course and mounts a year-end Santa Claus rally, CNBC's Jim Cramer said Wednesday, leaning on technical analysis ... Read more »

Tel Aviv is the most expensive city in the world

Not Paris, New York or Singapore, but Tel Aviv will be the most expensive city in the world to live in in 2021. According to research by the British business ... Read more »

Wealth inequality is decreasing as house prices rise

Photo: ANP Wealth inequality in the Netherlands is decreasing as a result of the rise in house prices. At the beginning of last year, the 10 percent richest households owned ... Read more »

US companies battling rising prices and labour shortages: Fed survey

WASHINGTON (REUTERS) – The US economy expanded at a modest-to-moderate pace in October and the first half of November while firms grappled with rising inflation and a scramble to fill ... Read more »

Thailand expected to see major 5G growth Planned merger seen boosting investment

Thailand's revenue from 5G technology is predicted to reach US$41 billion by 2030, while almost half of mobile subscribers are expected to have access to the fifth-generation service by 2027, ... Read more »

Jack Dorsey's Square changes name to Block in nod to blockchain

In recent months, Mr Jack Dorsey has revved up Square’s efforts in several cryptocurrency-related areas. SAN FRANCISCO (BLOOMBERG, REUTERS) – Square is changing its corporate name to Block as it ... Read more »

Sector expected to face systemic risks

SET-listed Thaivivat Insurance (TVI) expects insurers to face systemic risks when future coronavirus outbreaks take place. Jiraphant Asvatanakul, TVI president and chief executive, said the risks remain high within the ... Read more »

SET stages recovery despite Omicron, Fed concerns

The Stock Exchange of Thailand Index (SET) rebounded yesterday after declining by nearly 80 points, or 4.8%, over the previous three days, amid concerns over the Covid-19 Omicron variant and ... Read more »

SNP pins hopes on novel strategies to drive sales to B6bn

SNP chief operating officer Arth Prakhunhungsit said the company still expects its sales to contract by 5% this year from a 20% fall in 2020. SET-listed S&P Syndicate Plc (SNP), ... Read more »

TPIPP aims to be coal-free power generator by 2025

A waste-to-energy power plant developed by TPIPP in Saraburi. SET-listed TPI Polene Power Plc (TPIPP), Thailand's largest waste-to-energy (WTE) project developer and operator by capacity, has vowed to become a ... Read more »

Thai organisations lauded for tech development

Five local organisations have been praised for applying technology to bolster their operations at an awards ceremony held by the Asian-Oceanian Computing Industry Organization (ASOCIO), a non-profit agency that supports ... Read more »

Cramer's Investing Club: Why Costco's monthly sales miss doesn't change our view

A consumer shops in a Costco store on September 28, 2021 in Miami, Florida.Joe Raedle | Getty Images (This article was sent first to members of the CNBC Investing Club ... Read more »

Cramer says to start buying these 'bargain basement stocks' now before omicron fears pass

CNBC's Jim Cramer said Wednesday investors should start to nibble on some beaten-down stocks after the market slid following news of the first case of the Covid omicron variant in ... Read more »

Apec meet boosts 'BCG economy' Sustainable growth the goal post-Covid

The ‘chalom’ (woven bamboo basket) logo was considered suitable for use at Apec summits due to its messages of positivity regarding issues such as sustainability and resilience. (Photo: Nutthawat Wicheanbut) ... Read more »

China denies report it is looking to close foreign IPO loophole

BEIJING (AFP) – Beijing on Wednesday (Dec 1) denied a report that it was looking to plug a loophole used by Chinese tech companies to go public on foreign stock ... Read more »

Wealth inequality has declined slightly over the past five years

The differences between Dutch households in terms of wealth have decreased slightly every year since 2015. That is the conclusion of the Central Bureau of Statistics (CBS) on the basis ... Read more »

Hong Kong luxury home sales recover from Covid-19-induced slump, to hit record high this year

Sales of luxury homes in Hong Kong are likely to hit a record high this year, after activity slumped last year as buyers stayed on the sidelines because of the ... Read more »

FTI members worried about operating costs

Wirat Uanarumit, vice-chairman of the Federation of Thai Industries (Bangkok Post file photo) Manufacturing costs are estimated to increase by 10-20% in the next 3-6 months mainly because of higher ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic