Latest news with #BloombergDollarSpotIndex
Yahoo
2 days ago
- Business
- Yahoo
Dollar's Weekly Gain Looks Like a Blip as Pressures Mount
(Bloomberg) -- The best week for the dollar in three months isn't enough to reverse its broader declines as US trade and policy uncertainty weighs on sentiment. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry NY Wins Order Against US Funding Freeze in Congestion Fight A gauge of dollar strength is on track for its longest monthly losing streak in five years despite being up 0.4% so far this week. Investors were focused on a proposed US measure that would hit companies from countries deemed to have 'discriminatory' tax policies. 'If the bill as presently written takes effect, it would deter foreign investment in US assets at a time when the country faces increasing reliance on foreign capital to finance its ballooning debt,' wrote Elias Haddad, a strategist at Brown Brothers Harriman & Co. in a note. 'Clearly, this is not good for the dollar.' Concern that President Donald Trump's erratic trade policies will undermine the economy are adding to the greenback's weakness and eroding its appeal as a traditional haven bet. A court battle is underway over the legality of Trump's sweeping tariffs — though the US administration insists they're here to stay. The Bloomberg Dollar Spot Index pared earlier gains to trade up 0.1% on Friday as reports showed US consumers hitting the brakes on spending in April while goods imports plummeted by a record as companies adjusted to higher tariffs. US consumer sentiment rebounded in late May, according to the University of Michigan. The latest data is 'still insufficient for the Federal Reserve to seriously consider its cuts,' said Yusuke Miyairi, a foreign-exchange strategist at Nomura. 'Choppy price action in the dollar continues, owing to the market following back-and-forth tariff headlines.' On Friday, Trump accused China of violating an agreement with the US to ease tariffs, intensifying tensions between the world's two largest economies again. Earlier in the week, stronger-than-expected economic data lifted the dollar amid a global bond rally. But on Thursday, the greenback weakened after weak jobs results. Meanwhile, a gauge of emerging-market currencies is on track for its first weekly loss since mid-April as investors scale back on risk following recent gains. The South African rand slumped more than 1% against the dollar on Friday. While currencies including the rand and Mexico's peso have strengthened more than 4% against the greenback since Trump unveiled his comprehensive list of tariffs, traders are taking some profits amid renewed global trade noise. Investors 'are bringing back some USD bids' ahead of the weekend, said Alejandro Cuadrado, head of global FX and Latin America strategy at Banco Bilbao Vizcaya Argentaria SA in New York. 'As we approach new tariff deadlines we could see some uptick in volatility from very low levels, particularly in Latin America.' The world's reserve currency has been losing its appeal since the beginning of the year amid the trade war. Speculative traders remained bearish on the dollar in the week through May 20, but trimmed their positioning to $12.4 billion from $16.5 billion in the week prior, according to the Commodity Futures Trading Commission. 'What we're waiting to see next is whether the dollar decline begins to reassert itself,' said Paul Mackel, global head of currency research at HSBC Holdings Plc. 'So what can drive that? Front and center it will be related to what's happening with the US economy.' --With assistance from Naomi Tajitsu and Vinícius Andrade. (Updates with US economic data, market moves throughout and adds performance of emerging-market currencies.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol Will Small Business Owners Knock Down Trump's Mighty Tariffs? ©2025 Bloomberg L.P.
Yahoo
2 days ago
- Business
- Yahoo
Dollar's Weekly Gain Looks Like a Blip as Pressures Mount
(Bloomberg) -- The best week for the dollar in three months isn't enough to reverse its broader declines as US trade and policy uncertainty weighs on sentiment. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move NY Wins Order Against US Funding Freeze in Congestion Fight Why Arid Cities Should Stick Together A gauge of dollar strength was up 0.5% in the week so far, still on track for its longest monthly losing streak in five years. Investors were focused on a proposed US measure that would hit companies from countries deemed to have 'discriminatory' tax policies. Obscure Tax Item in Trump's Big Bill Alarms Wall Street 'If the bill as presently written takes effect, it would deter foreign investment in US assets at a time when the country faces increasing reliance on foreign capital to finance its ballooning debt,' wrote Elias Haddad, a strategist at Brown Brothers Harriman & Co. 'Clearly, this is not good for the dollar.' Concern that Trump's erratic trade policies will undermine the economy are adding to the greenback's weakness and eroding its appeal as a traditional haven bet. A court battle is underway over the legality of Trump's sweeping tariffs — though the US administration insists they're here to stay. The Bloomberg Dollar Spot Index pared earlier gains to trade up 0.2% on Friday. Stronger-than-expected economic data lifted the dollar at the start of the week amid a global bond rally. But on Thursday, the greenback was down again after weak jobs and economic data supported the case for rate cuts that traditionally hurt the currency. Traders will be watching US statistics due later Friday, which include the PCE inflation print and personal spending numbers. 'What we're waiting to see next is whether the dollar decline begins to reassert itself,' said Paul Mackel, global head of currency research at HSBC Holdings Plc. 'So what can drive that? Front and center it will be related to what's happening with the US economy.' --With assistance from Naomi Tajitsu. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Sign in to access your portfolio
Mint
3 days ago
- Business
- Mint
Gold Steadies as Investors Weigh Impact of Trump Tariff Ruling
Gold steadied as markets absorbed news that the US trade court has blocked President Donald Trump's global tariff agenda. Bullion was little changed, paring losses from earlier in the morning when the market reacted to the US Court of International Trade deeming many of Trump's tariffs illegal. The dollar rallied in response to the news, weighing on gold. The Trump administration filed a notice that it was appealing the ruling, which suspends most of its tariffs. The US Supreme Court may ultimately have the final say in the high-stakes case that could impact trillions of dollars in global trade. The ruling, a major blow to a pillar of the Republican's economic agenda, could dim some of gold's haven appeal. 'The news out of the US could see some significant downside for gold in the sessions ahead as haven trades are pulled,' said Nick Twidale, chief market analyst at AT Global Markets in Sydney, adding that prices could unwind further in the current trading session before finding some support. 'The longer term trend is still in place so we will find some bargain hunters at some point in the day.' Elsewhere, strong tech earnings from Nvidia Corp. on Wednesday saw an acceleration of risk appetite returning to Wall Street — also adding to bearish headwinds for gold. The positive results came after US consumer confidence figures published earlier in the week showed a sharp rebound amid optimism about improving US relations with some of its trading partners. The US trade court ruling is the latest twist in the market uncertainty unleashed by Trump's aggressive tariff agenda, which has driven investors to seek safety in gold, a traditional haven. While prices are currently about $220 below an all-time-high set last month, the precious metal is still up by more than a quarter this year. Spot gold was down 0.2% to $3,280.76 an ounce as of 10:05 a.m. in London. The Bloomberg Dollar Spot Index was unchanged. Silver and palladium gained and platinum fell. With assistance from Jack Ryan. This article was generated from an automated news agency feed without modifications to text.
Yahoo
6 days ago
- Business
- Yahoo
Gold Holds Decline as EU-US Trade Talks Weigh on Haven Demand
(Bloomberg) -- Gold held a small decline as demand for haven assets cooled, with investors weighing prospects for improving trade relations between the US and the EU. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy UAE's AI University Aims to Become Stanford of the Gulf NYC's War on Trash Gets a Glam Squad Pacific Coast Highway to Reopen Near Malibu After January Fires Bullion traded near $3,347 an ounce, following a 0.4% loss on Monday, after Brussels said it would accelerate negotiations with Washington to avoid a trans-Atlantic trade war. Both sides have softened their approach after US President Donald Trump initially criticized the bloc for dragging its feet on talks. Demand for safe assets like gold has been impacted as signs emerge that the White House may be making progress in negotiations with some trading partners. Gold-backed exchange-traded funds registered five straight weeks of outflows since peaking at the highest in more than a year in mid-April, according to Bloomberg calculations. But markets remain in wait-and-see mode, weighing a number of risks including the swelling US deficit, ongoing trade talks, and worsening conflicts in the Middle East and Ukraine. Gold has advanced by more than a quarter this year though prices are currently trading about $165 below an all-time-high set last month. Citigroup Inc. reverted to a short-term call for $3,500 per ounce on Monday, reinforcing its haven status amid fresh trade and geopolitical risks. Investors are also gearing up for the Federal Reserve's preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. Spot gold was up 0.1% to $3,344.65 an ounce as of 7:56 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Platinum extended declines after last week reaching the highest level in two years on signs of market tightness. Silver edged lower and palladium was little changed. Why Apple Still Hasn't Cracked AI How Coach Handbags Became a Gen Z Status Symbol Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Inside the First Stargate AI Data Center AI Is Helping Executives Tackle the Dreaded Post-Vacation Inbox ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Dollar Falls to Lowest Since 2023 as Investors Eye Trade Risks
(Bloomberg) -- The US dollar slumped to its lowest level since 2023 as new tariff threats from President Donald Trump and the risk of a widening fiscal deficit drag on the currency's appeal. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? NYC's War on Trash Gets a Glam Squad UAE's AI University Aims to Become Stanford of the Gulf Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt The Bloomberg Dollar Spot Index fell as much as 0.8% on Friday, extending a more-than-7% decline since the beginning of the year. The dollar is down for a fourth day in five after Trump's latest threats of tariffs — on the European Union and Apple Inc. — added to investor concern about the impact of his trade policies on the world's top economy. A 'large increase in tariffs on US imports from the EU once again brings forward the potential for recession risks in the US alongside higher policy and economic uncertainty,' said Aroop Chatterjee, a strategist at Wells Fargo in New York. The dollar's declines offered support for all of its Group-of-10 currency peers. Seven currencies out of the group rose 1% or more against the greenback, with New Zealand and Australian dollars leading advances. The Canadian loonie strengthened to as much as 1.3712 per US currency, its strongest level since October. The Swiss franc meanwhile rose to highest in over two weeks, trading at 0.8206 against the greenback Friday. The losses on Friday continued even after Treasury Secretary Scott Bessent said on Bloomberg Television's Wall Street Week with David Westin that the US could strike several large trade deals in the next couple of weeks. He also said that he wouldn't necessarily call the dollar weak, adding that the recent moves in foreign-exchange have been driven more by other currencies appreciating rather than the greenback softening. Dollar 'Jitters' Enthusiasm has been fading for the world's reserve currency for months. Speculative traders — including hedge funds, asset managers and others — hold some $16.5 billion worth of positions tied to the dollar weakening, around the most since September, according to Commodity Futures Trading Commission data for the week ending May 13. Some of the angst has come as the Senate considers Trump's tax bill, which includes a debt ceiling increase the Treasury needs to avoid a default that could happen as soon as August or September. The version of the bill passed by the House of Representatives is expected to add hundreds of billions of dollars to the federal deficit each year. 'The jitters with respect to the US budget suggest that the market is continuing to re-think the US exceptionalism trade,' Jane Foley, a strategist in London for Rabobank. 'Whether it be budget, inflation or growth concerns, investors are more wary of US assets and that is continuing to weigh on the dollar.' --With assistance from Carter Johnson and Naomi Tajitsu. (Updates market throughout, adds details on currency performance.) Why Apple Still Hasn't Cracked AI How Coach Handbags Became a Gen Z Status Symbol Inside the First Stargate AI Data Center Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
