Aussie Dollar Rises as RBA Reaffirms More Bulls Ahead, Yen Troubles According to Reuters

© Reuters. FILE PHOTO: An Australian dollar bill is seen in this illustration photo June 1, 2017. REUTERS / Thomas White / Illustration

By Alun John

HONG KONG (Reuters) – The Australian dollar rose on Tuesday after the central bank warned more rate hikes were underway, but gains were held back by falling commodity prices, while the Japanese yen weakened. near a 24-year low.

The Aussie was 0.3 percent higher at $0.69675, extending the previous day’s small gains, after Reserve Bank of Australia (RBA) Governor Philip Lowe signaled further policy tightening.

Lowe said rates remain “very low” and it is important that higher inflation does not affect public expectations and wage requirements.

The RBA’s minutes from its June meeting, in which the central bank raised interest rates more than 50 basis points higher than expected, highlight the central bank’s concerns about inflation.

However, the Australian dollar is facing pressure from falling commodity prices and analysts at CBA say further falls in iron ore prices will weigh on the currency in the near term amid global growth. Slowing down will be a drag in the long term.

“We forecast to spend most of the next twelve months in the 0.60‑0.70 range,” they said in a note.

Elsewhere, the Japanese yen remained under pressure at 135.1 yen per dollar, not far from a 24-year low of 135.58 yen reached early last week, after the Bank of Japan Friday canceled any slight expectations of a policy change and renewed pledges to the ultra-easy currency setting.

The euro was at $1.0519, a fraction higher, on Monday from European Central Bank President Christine Lagarde about the need to minimize the risk of financial dispersion among eurozone countries. euro from the outset, overshadowed the negative drag of French President Emmanuel Macron losing his parliamentary majority. .

The higher risk sentiment across the market, with US equity futures up around 1%, also supported the Aussie and the euro.

Tracks the greenback against six major coins, slightly lower at 104.38. [MKTS/GLOB]

U.S. markets were closed Monday for a holiday, but the big event for the dollar this week is Federal Reserve Chairman Jerome Powell’s biennial report to Congress that begins on Monday. Wednesday.

The pound was at $1.227, up from last week’s more than two-year low of $1.1934.

at $20,500 failed to break strongly above or below the psychologically important $20,000 in recent days.

Source link


News 7D: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button