Dollar Holds Steady against Counterparts as Markets Reopen

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Dollar Holds Steady against Counterparts as Markets ReopenThe dollar edged higher to its highest level in two weeks against its peers, including the yen on Tuesday as the markets opened after the long Easter weekend.

“The market is making its way back from holiday mode,” Sue Trinh, a Hong Kong-based currency strategist at RBC Capital Markets told Reuters.

The yen was weighed by Monday’s report that indicated that Japan export orders declined, pressurizing the policymakers to consider rolling out more economic stimulus.

The dollar index edged up to 79.957, after earlier reaching 79.988, its strongest point since April 8. The dollar advanced 0.1 percent to 102.66 yen, after earlier touching to a high of 102.73 yen, a two-week high. The euro, which briefly touched 141.84 yen yesterday, its strongest in two weeks, was also up 0.1 percent to 141.63 yen.

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The U.S. dollar also advanced against the New Zealand dollar, which hovered at a two-and-half week low of $0.8555 yesterday.

The Chinese yuan fell to its lowest level in 14 months against the greenback at 6.2335 a dollar as the market remained nervous over China’s economic slowdown and recent interventions by the authorities to prevent the yuan from strengthening. The People’s Bank of China fixed a lower border line of the range within which the yuan is permitted to trade.

So far, the yuan has plunged about 2.84 percent versus the dollar since January this year.

The market is also waiting to hear a keynote speech by European Central Bank’s President Mario Draghi in Amsterdam on Thursday. Draghi has recently been quoted as saying that monetary easing will be rolled out if the euro continues to strengthen against its peers, including the dollar.

Investors are also awaiting data on China’s manufacturing industry, inflation figures in Australia and New Zealand’s interest rate review in the next two days. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com

 

 

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