Latest news with #BloombergDollarSpot
Mint
9 hours ago
- Business
- Mint
Dollar Erases Gain as Fed's Bowman Signals Support for July Cut
The dollar erased its advance on Monday after the Federal Reserve's Michelle Bowman said she could support reducing interest rates as soon as July. The remarks by Vice Chair for Supervision Bowman echoed comments by Fed Governor Christopher Waller on Friday, and they raised the prospect that lower borrowing costs could dim the dollar's relative allure. As a result, the greenback gave up an earlier advance that was fueled by geopolitical tension after the US bombed nuclear sites in Iran over the weekend. The Bloomberg Dollar Spot index was little changed in mid-morning New York trading, after rising as much as 0.6% earlier as traders sought the dollar as a haven. Investors also worried that the prospect of a jump in oil prices following the US airstrikes in Iran could stoke inflation and prevent the Fed from cutting rates. 'The attack is already looking to fade into the market backdrop, and traders have refocused their attention on Fed speakers like Bowman and are looking ahead to several key data releases to wrap up the quarter, all of which are pointing to a weaker dollar,' said Helen Given, a foreign-exchange trader at Monex Inc. Investors are watching for signs that Iran could respond to strikes by Israel and the US by seeking to disrupt shipping in the Strait of Hormuz, a major route for oil and natural gas. While the reaction in global stock markets has been muted, Brent crude rose more than 5% at one point on Monday before erasing the climb. 'Prolonged conflict and inflationary pressures could complicate the US Federal Reserve's policy stance even as the dollar initially strengthens after the attack,' said Gregor Hirt, CIO of multi-asset at AllianzGI. With assistance from Vassilis Karamanis and Alice Gledhill.
Yahoo
13 hours ago
- Business
- Yahoo
Dollar Surges as Mideast Escalation Spurs Inflation Risk
(Bloomberg) -- The dollar rose to the highest level in nearly a month as US strikes on Iran spurred demand for the haven currency while underscoring the risks posed by climbing oil prices. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice One Architect's Quest to Save Mumbai's Heritage From Disappearing NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports The Bloomberg Dollar Spot index gained as much as 0.6% to hit levels last seen on May 30 as investors worried that higher oil prices could stoke inflation and prevent the Federal Reserve from cutting interest rates. The greenback jumped more than 1% versus the yen, extending gains during London trading on reports that Israel had launched a fresh attack on a key Iranian nuclear site. 'The higher level of geopolitical uncertainty and the risk of triggering another energy price shock is providing more support for the US dollar in the near-term alongside the Fed's reluctance to resume rate cuts,' Lee Hardman, senior FX strategist at MUFG, wrote in a research note. The rapidly escalating conflict in the Middle East has boosted the dollar and the currency rebounded from a three-year low last week, posting its strongest weekly performance since late February. Signals in the options market suggest it has more room to gain in the near term, with a rise in one-month risk reversals pointing to the most bullish sentiment for the currency since early April. Reverting to Type The dollar 'has reverted to type by displaying a safe haven bid,' said Jane Foley, head of FX strategy at Rabobank. 'This is in contrast to its behavior through most of the year to date when it has failed to rally on fears of a US tariff led global slowdown.' Investors are watching for signs that Iran could respond to strikes by Israel and the US by seeking to disrupt shipping in the Strait of Hormuz, a major route for oil and natural gas. While the reaction on global stock markets has been muted, Brent crude hit a five-month high on Monday. Higher oil prices could stoke inflation and make the Federal Reserve reluctant to cut interest rates in the coming months as it seeks to avoid stagflation — a period of rising prices that coincides with weaker economic growth. This risk weighed on Treasuries, which slipped on Monday, pushing the 10-year yield as much as 3 basis points higher to 4.40%. Traders meanwhile dialed back their expectations for US interest rate cuts, pricing the possibility that the Fed will deliver an additional 48 basis points of cuts by the end of the year, down slightly from the roughly 50 basis points expected late last week. 'Prolonged conflict and inflationary pressures could complicate the US Federal Reserve's policy stance even as the dollar initially strengthens after the attack,' said Gregor Hirt, CIO of Multi Asset at AllianzGI. 'Over the medium term, structural concerns – such as the US twin deficits and weakening safe-haven credibility – may weigh on the currency,' Hirt said. --With assistance from Vassilis Karamanis and Alice Gledhill. Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
14-04-2025
- Business
- Bloomberg
Bloomberg Surveillance: Tariffs' Market Impact
Watch Tom and Paul LIVE every day on YouTube: Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney April 14th, 2025 Featuring: 1) Lori Calvasina, Chief US Equity Strategist at RBC Capital Markets, joins for an extended discussion on the outlook for equities and where her S&P target stands. Stocks jumped once President Trump paused import duties on consumer electronics, boosting sentiment. Despite the reprieve, volatility in markets is expected to continue. 2) Gargi Chaudhuri, Chief Investment Strategist, Americas at BlackRock, discusses the outlook for equities, and whether there's a bull case in the market given the concern. While the Dollar has struggled, yen optimism is spreading and the euro is emerging as a prime beneficiary of greenback weakness as investors reassess the dollar's role in the global financial system. 3) Penny Foley, Portfolio Manager for the TCW Emerging Markets Group, on what she expects from the emerging markets environment given uncertain US policy. The Bloomberg Dollar Spot index fell for a fifth day, touching the lowest levels since October, on concern over the Trump administration's tariff policy, and its effects are expected to ripple throughout emerging markets. 4) Henrietta Treyz, co-founder at Veda Partners, joins to discuss on again, off again tariffs and newfound urgency for the tax bill. President Trump is prioritizing extending the 2017 Tax Cuts and Jobs Act this year, with Republicans in Congress agreeing on a framework to make the cuts permanent. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including Dubai dethroning Heathrow as the world's busiest international airport and why there may be fewer outdoor dining spots in New York City this year.
