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Time of India
2 days ago
- Business
- Time of India
Dollar eases as data keep September rate cut on track; eyes on Trump-Putin meeting
The dollar weakened on Friday. This happened after a week filled with economic data. The possibility of a Federal Reserve interest rate cut in September remains. Traders are closely watching the meeting between Donald Trump and Vladimir Putin regarding Ukraine. Markets are also awaiting the Jackson Hole symposium for further clues on the Fed's next move. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The dollar slipped on Friday as a data-heavy week wound down, keeping the case for a September Federal Reserve interest rate cut intact, while traders awaited talks in Alaska between U.S. President Donald Trump and Russian leader Vladimir Putin regarding dollar, which had jumped on Thursday as data showed U.S. producer prices increased more than expected in July, gave up most of those gains on Friday, and was set to finish the week 0.4% lower against a basket of currencies."The PPI figure yesterday was a shock, but there is still little concrete evidence for a tariff-driven spike in inflation," Kyle Chapman, forex markets analyst at Ballinger & Co in London, said."With markets staying firm on their bets for a September cut and the focus now shifting to Alaska, the dollar is handing back its gains this morning," Chapman markets reflect a 93% chance of a 25-basis-point Fed rate cut in September, according to CME FedWatch.A Fed interest rate cut in September, the first this year, followed perhaps by another before year-end, remains the base forecast for most economists polled by Reuters amid rising concerns about the health of the world's biggest Federal Reserve Bank President Austan Goolsbee on Friday said the latest reports this week showing a rise in services inflation are a source of "unease" given what he sees as the stagflationary impulse from tariffs on the Friday, investors were also watching to see if the Trump-Putin summit made any progress towards a ceasefire in Ukraine."While anything could happen at the meeting between Trump and Putin, I think expectations are low for progress towards a lasting ceasefire and that tilts the risks towards a softer dollar if the market is pleasantly surprised," Ballinger's Chapman analysts expect Europe's single currency to benefit from any ceasefire deal in Ukraine. The euro was 0.5% higher at $1.1702 versus the dollar found little support on Friday from data that showed U.S. import prices rebounded in July, boosted by higher costs for consumer U.S. retail sales increased solidly in July, boosted by strong demand for motor vehicles as well as promotions by Amazon and also await next week's Jackson Hole symposium for clues on the Fed's next move. Signs of weakness in the U.S. labour market combined with any inflation from trade tariffs could present a dilemma for the Fed's rate cut trajectory."While there are more Fed officials talking about resuming rate cuts, (Fed Chair Jerome) Powell may try to temper expectations about when and how much they'll cut," Brian Jacobsen, chief economist at Annex Wealth Management, said in a the yen, the dollar was 0.4% lower at 147.23 yen, following the release of surprisingly strong Japanese growth data, which showed export volumes held up well against new U.S. tariffs.U.S. Treasury Secretary Scott Bessent's remarks earlier this week that the Bank of Japan could be "behind the curve" in dealing with the risk of inflation proved to be another tailwind for the yen this rose against a weakening dollar on Friday and was set to end the week higher after upbeat economic data and a hawkish rate cut by the Bank of England. The pound was last up 0.2% at $1.35520, taking its gains for the week to 0.7%.Elsewhere, bitcoin was about unchanged on the day at $117,126. Bitcoin had at one point touched a record high on Thursday as increasing expectations for easier monetary policy from the Fed added to optimism stemming from a pro-crypto regulatory environment in Washington.
Business Recorder
2 days ago
- Business
- Business Recorder
Dollar slips
NEW YORK: The dollar eased on Friday as a data-heavy week wound down, keeping the case for a September Federal Reserve interest rate cut intact, while traders awaited talks in Alaska between Donald Trump and Vladimir Putin regarding Ukraine. The dollar, which had jumped on Thursday as data showed US producer prices increased more than expected in July, gave up most of those gains on Friday, and was set to finish the week 0.5% lower against a basket of currencies. 'The PPI figure yesterday was a shock, but there is still little concrete evidence for a tariff-driven spike in inflation,' Kyle Chapman, forex markets analyst at Ballinger & Co in London, said. 'With markets staying firm on their bets for a September cut and the focus now shifting to Alaska, the dollar is handing back its gains this morning,' Chapman added. Money markets reflect a 93% chance of a 25-basis-point Fed rate cut in September, according to CME FedWatch. A Fed interest rate cut in September, the first this year, followed perhaps by another before year-end, remains the base forecast for most economists polled by Reuters amid rising concerns about the health of the world's biggest economy. Chicago Federal Reserve Bank President Austan Goolsbee on Friday said the latest reports this week showing a rise in services inflation are a source of 'unease' given what he sees as the stagflationary impulse from tariffs on the economy. On Friday, investors were also watching to see if the Trump-Putin summit made any progress towards a ceasefire in Ukraine. 'While anything could happen at the meeting between Trump and Putin, I think expectations are low for progress towards a lasting ceasefire and that tilts the risks towards a softer dollar if the market is pleasantly surprised,' Ballinger's Chapman said. Most analysts expect Europe's single currency to benefit from any ceasefire deal in Ukraine. The euro was 0.5% higher at $1.1708 versus the dollar. The dollar found little support on Friday from data that showed US import prices rebounded in July, boosted by higher costs for consumer goods. Separately, US retail sales increased solidly in July, boosted by strong demand for motor vehicles as well as promotions by Amazon and Walmart. Markets also await next week's Jackson Hole symposium for clues on the Fed's next move. Signs of weakness in the US labour market combined with any inflation from trade tariffs could present a dilemma for the Fed's rate cut trajectory. 'Recession risks remain low, but I think it's wise for the Fed to shift to a more neutral stance and cut rates in coming meetings,' Jeffrey Roach, chief economist for LPL Financial, said in a note. Against the yen, the dollar was 0.5% lower at 146.975 yen, following the release of surprisingly strong Japanese growth data, which showed export volumes held up well against new US tariffs. US Treasury Secretary Scott Bessent's remarks earlier this week that the Bank of Japan could be 'behind the curve' in dealing with the risk of inflation proved to be another tailwind for the yen this week. Sterling rose against a weakening dollar on Friday and was set to end the week higher after upbeat economic data and a hawkish rate cut by the Bank of England. The pound was last up 0.3% to $1.35705, taking its gains for the week to 0.9%.
Mint
3 days ago
- Business
- Mint
Dollar slips as data keep September rate cut on table; eyes on Trump-Putin meeting
NEW YORK -The dollar eased on Friday as a data-heavy week wound down, keeping the case for a September Federal Reserve interest rate cut intact, while traders awaited talks in Alaska between Donald Trump and Vladimir Putin regarding Ukraine. The dollar, which had jumped on Thursday as data showed U.S. producer prices increased more than expected in July, gave up most of those gains on Friday, and was set to finish the week 0.5% lower against a basket of currencies. "The PPI figure yesterday was a shock, but there is still little concrete evidence for a tariff-driven spike in inflation," Kyle Chapman, forex markets analyst at Ballinger & Co in London, said. "With markets staying firm on their bets for a September cut and the focus now shifting to Alaska, the dollar is handing back its gains this morning," Chapman added. Money markets reflect a 93% chance of a 25-basis-point Fed rate cut in September, according to CME FedWatch. A Fed interest rate cut in September, the first this year, followed perhaps by another before year-end, remains the base forecast for most economists polled by Reuters amid rising concerns about the health of the world's biggest economy. Chicago Federal Reserve Bank President Austan Goolsbee on Friday said the latest reports this week showing a rise in services inflation are a source of "unease" given what he sees as the stagflationary impulse from tariffs on the economy. On Friday, investors were also watching to see if the Trump-Putin summit made any progress towards a ceasefire in Ukraine. "While anything could happen at the meeting between Trump and Putin, I think expectations are low for progress towards a lasting ceasefire and that tilts the risks towards a softer dollar if the market is pleasantly surprised," Ballinger's Chapman said. Most analysts expect Europe's single currency to benefit from any ceasefire deal in Ukraine. The euro was 0.5% higher at $1.1708 versus the dollar. The dollar found little support on Friday from data that showed U.S. import prices rebounded in July, boosted by higher costs for consumer goods. Separately, U.S. retail sales increased solidly in July, boosted by strong demand for motor vehicles as well as promotions by Amazon and Walmart. Markets also await next week's Jackson Hole symposium for clues on the Fed's next move. Signs of weakness in the U.S. labour market combined with any inflation from trade tariffs could present a dilemma for the Fed's rate cut trajectory. "Recession risks remain low, but I think it's wise for the Fed to shift to a more neutral stance and cut rates in coming meetings," Jeffrey Roach, chief economist for LPL Financial, said in a note. Against the yen, the dollar was 0.5% lower at 146.975 yen, following the release of surprisingly strong Japanese growth data, which showed export volumes held up well against new U.S. tariffs. U.S. Treasury Secretary Scott Bessent's remarks earlier this week that the Bank of Japan could be "behind the curve" in dealing with the risk of inflation proved to be another tailwind for the yen this week. Sterling rose against a weakening dollar on Friday and was set to end the week higher after upbeat economic data and a hawkish rate cut by the Bank of England. The pound was last up 0.3% to $1.35705, taking its gains for the week to 0.9%. Elsewhere, bitcoin and ether rose after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday as increasing expectations for easier monetary policy from the Fed added to optimism stemming from a pro-crypto regulatory environment in Washington. This article was generated from an automated news agency feed without modifications to text.
Reuters
26-02-2025
- Business
- Reuters
Canadian dollar steadies near 2-week low as tariff deadline draws closer
TORONTO, Feb 26 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Wednesday, holding near an earlier two-week low, as an approaching deadline for U.S. import tariffs led investors to grow more worried about the prospects of a trade war. The loonie was trading nearly unchanged at 1.4315 per U.S. dollar, or 69.86 U.S. cents, after touching its weakest intraday level since February 10 at 1.4365. U.S. President Donald Trump has delayed implementation of a 25% tariff on goods from Mexico and Canada until March 4 to allow negotiations over steps to secure U.S. borders and halt the flow of the drug fentanyl. On Monday, Trump said the tariffs are "on time and on schedule," denting hopes of a further reprieve. Canada sends about 75% of its exports to the U.S. "The conclusion from the first delay in tariff implementation was that Trump was only interested in gaining concessions from Canada, and that helped CAD settle into a period of calm," said Kyle Chapman, FX markets analyst at Ballinger & Co in London. "But with Trump's hard stance on the new March deadline, each day closer is seeing markets price that tariff risk premium back in, bit by bit." The Canadian dollar hit a 22-year low at 1.4793 on February 3, before the tariffs were delayed. "The market really bought into the narrative that Trump wouldn't go through with a trade war, and obviously that sets USD-CAD up to spike again if they have wrongly called his bluff." The price of oil, one of Canada's major exports, fell as a surprise build in U.S. fuel stockpiles signalled demand weakness and a potential peace deal between Russia and Ukraine continued to weigh on prices. U.S. crude oil futures were down 0.6% at $68.53 a barrel. Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up about half a basis point at 3% after earlier touching its lowest level since February 7 at 2.973%.
