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Yahoo
01-08-2025
- Business
- Yahoo
Dollar gains against peers after Fed leaves rates unchanged
By Chibuike Oguh NEW YORK (Reuters) -The dollar strengthened against major peers on Wednesday after the Federal Reserve left U.S. interest rates unchanged, in line with market expectations but rebuffing pressure from President Donald Trump. The Federal Open Market Committee voted 9-2 to keep its benchmark overnight interest rate steady in the 4.25%-4.50% range for the fifth consecutive meeting. Both Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller, who were appointed by Trump, dissented, preferring to lower rates by 25 basis points. In his subsequent press briefing, Fed Chair Jerome Powell said he is expecting a slow process when it comes to understanding how trade tariffs impact inflation. "The Fed's decision to hold rates steady came as no surprise, though markets took note of two dissenting votes in favor of a cut," said Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago. "The dollar remained well-supported following this morning's stronger data and the Fed announcement, with the market pricing the September meeting as a coin-flip," Shinohara added. Earlier in the session, data showed that U.S. economic growth rebounded more than expected in the second quarter, expanding by 3% compared with an estimate of 2.4% based on a Reuters poll of economists. The euro extended losses against the dollar following the Fed's decision and as Powell spoke. It was last down 1% to $1.141775, on track for the fifth straight session of losses and trading at its lowest level since June 11. The euro is also poised to record its first monthly drop in 2025, following a sharp reaction to a U.S.-European Union trade deal earlier this week. The dollar index added to its gains after the Fed. It was up 0.96% at 99.82, hitting its highest level since May 29 and on course to post its first month of gains this year. U.S. Treasury yields were mostly higher. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 6.6 basis points to 3.941%. "I think people are reading too much into the GDP numbers; nobody in markets should think GDP was that weak in Q1 and that strong in Q2 even though the big drivers were inventories and net exports," said Steve Englander, head of global G10 FX Research at Standard Chartered in New York. "I will add the two quarters together and they averaged about 1.5% GDP growth per quarter, which is not a recession but qualifies as mediocre." Trade agreements struck with Japan last week and the EU over the weekend signalled a renewed U.S. commitment to global engagement, easing investor concerns. Investors' focus is now on negotiations between China and the U.S. after officials agreed to seek an extension of their 90-day tariff truce. But Trump upped the ante against India and Brazil on Wednesday. He announced that a 25% tariff on U.S. imports of Indian goods, starting on August 1 and signed an executive order implementing an additional 40% tariff on Brazil, bringing the total tariff amount to 50%. Data showed on Wednesday that the German economy contracted in the second quarter, while France's economy beat forecasts. The spotlight will be on comments from BoJ Governor Kazuo Ueda as investors hope the trade deal between Japan and the U.S. paves the way for the central bank to raise rates on Thursday. The dollar was 0.55% firmer to 149.29 against the yen, after hitting its highest since April 2. Against the Swiss franc, the dollar strengthened 0.82% to 0.81265 francs, reaching its highest since June 23. 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
Yahoo
31-07-2025
- Business
- Yahoo
Dollar gains against peers after Fed leaves rates unchanged
By Chibuike Oguh NEW YORK (Reuters) -The dollar strengthened against major peers on Wednesday after the Federal Reserve left U.S. interest rates unchanged, in line with market expectations but rebuffing pressure from President Donald Trump. The Federal Open Market Committee voted 9-2 to keep its benchmark overnight interest rate steady in the 4.25%-4.50% range for the fifth consecutive meeting. Both Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller, who were appointed by Trump, dissented, preferring to lower rates by 25 basis points. In his subsequent press briefing, Fed Chair Jerome Powell said he is expecting a slow process when it comes to understanding how trade tariffs impact inflation. "The Fed's decision to hold rates steady came as no surprise, though markets took note of two dissenting votes in favor of a cut," said Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago. "The dollar remained well-supported following this morning's stronger data and the Fed announcement, with the market pricing the September meeting as a coin-flip," Shinohara added. Earlier in the session, data showed that U.S. economic growth rebounded more than expected in the second quarter, expanding by 3% compared with an estimate of 2.4% based on a Reuters poll of economists. The euro extended losses against the dollar following the Fed's decision and as Powell spoke. It was last down 1% to $1.141775, on track for the fifth straight session of losses and trading at its lowest level since June 11. The euro is also poised to record its first monthly drop in 2025, following a sharp reaction to a U.S.-European Union trade deal earlier this week. The dollar index added to its gains after the Fed. It was up 0.96% at 99.82, hitting its highest level since May 29 and on course to post its first month of gains this year. U.S. Treasury yields were mostly higher. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 6.6 basis points to 3.941%. "I think people are reading too much into the GDP numbers; nobody in markets should think GDP was that weak in Q1 and that strong in Q2 even though the big drivers were inventories and net exports," said Steve Englander, head of global G10 FX Research at Standard Chartered in New York. "I will add the two quarters together and they averaged about 1.5% GDP growth per quarter, which is not a recession but qualifies as mediocre." Trade agreements struck with Japan last week and the EU over the weekend signalled a renewed U.S. commitment to global engagement, easing investor concerns. Investors' focus is now on negotiations between China and the U.S. after officials agreed to seek an extension of their 90-day tariff truce. But Trump upped the ante against India and Brazil on Wednesday. He announced that a 25% tariff on U.S. imports of Indian goods, starting on August 1 and signed an executive order implementing an additional 40% tariff on Brazil, bringing the total tariff amount to 50%. Data showed on Wednesday that the German economy contracted in the second quarter, while France's economy beat forecasts. The spotlight will be on comments from BoJ Governor Kazuo Ueda as investors hope the trade deal between Japan and the U.S. paves the way for the central bank to raise rates on Thursday. The dollar was 0.55% firmer to 149.29 against the yen, after hitting its highest since April 2. Against the Swiss franc, the dollar strengthened 0.82% to 0.81265 francs, reaching its highest since June 23.
Reuters
30-07-2025
- Business
- Reuters
Dollar gains against peers after Fed leaves rates unchanged
NEW YORK, July 30 (Reuters) - The dollar strengthened against major peers on Wednesday after the Federal Reserve left U.S. interest rates unchanged, in line with market expectations but rebuffing pressure from President Donald Trump. The Federal Open Market Committee voted 9-2 to keep its benchmark overnight interest rate steady in the 4.25%-4.50% range for the fifth consecutive meeting. Both Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller, who were appointed by Trump, dissented, preferring to lower rates by 25 basis points. In his subsequent press briefing, Fed Chair Jerome Powell said he is expecting a slow process when it comes to understanding how trade tariffs impact inflation. "The Fed's decision to hold rates steady came as no surprise, though markets took note of two dissenting votes in favor of a cut," said Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago. "The dollar remained well-supported following this morning's stronger data and the Fed announcement, with the market pricing the September meeting as a coin-flip," Shinohara added. Earlier in the session, data showed that U.S. economic growth rebounded more than expected in the second quarter, expanding by 3% compared with an estimate of 2.4% based on a Reuters poll of economists. The euro extended losses against the dollar following the Fed's decision and as Powell spoke. It was last down 1% to $1.141775, on track for the fifth straight session of losses and trading at its lowest level since June 11. The euro is also poised to record its first monthly drop in 2025, following a sharp reaction to a U.S.-European Union trade deal earlier this week. The dollar index added to its gains after the Fed. It was up 0.96% at 99.82, hitting its highest level since May 29 and on course to post its first month of gains this year. U.S. Treasury yields were mostly higher. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 6.6 basis points to 3.941%. "I think people are reading too much into the GDP numbers; nobody in markets should think GDP was that weak in Q1 and that strong in Q2 even though the big drivers were inventories and net exports," said Steve Englander, head of global G10 FX Research at Standard Chartered in New York. "I will add the two quarters together and they averaged about 1.5% GDP growth per quarter, which is not a recession but qualifies as mediocre." Trade agreements struck with Japan last week and the EU over the weekend signalled a renewed U.S. commitment to global engagement, easing investor concerns. Investors' focus is now on negotiations between China and the U.S. after officials agreed to seek an extension of their 90-day tariff truce. But Trump upped the ante against India and Brazil on Wednesday. He announced that a 25% tariff on U.S. imports of Indian goods, starting on August 1 and signed an executive order implementing an additional 40% tariff on Brazil, bringing the total tariff amount to 50%. Data showed on Wednesday that the German economy contracted in the second quarter, while France's economy beat forecasts. The spotlight will be on comments from BoJ Governor Kazuo Ueda as investors hope the trade deal between Japan and the U.S. paves the way for the central bank to raise rates on Thursday. The dollar was 0.55% firmer to 149.29 against the yen , after hitting its highest since April 2. Against the Swiss franc , the dollar strengthened 0.82% to 0.81265 francs, reaching its highest since June 23.
Yahoo
04-04-2025
- Business
- Yahoo
Dollar gains vs euro, pares losses vs yen after US payrolls data
By Laura Matthews NEW YORK (Reuters) - The U.S. dollar rose against the euro and trimmed losses versus the yen on Friday, after non-farm payrolls data showed the U.S. economy added more jobs than expected in March. Non-farm payrolls rose by 228,000 jobs last month after a downwardly revised 117,000 rise in February, the Labor Department said. The euro is 0.21% weaker versus the dollar at $1.103, while the greenback pared losses against the yen to trade 0.29% lower at 145.67 yen. Uto Shinohara, senior investment strategist at Mesirow Currency Management, said that although non-farm payrolls significantly exceeded expectations, dollar moves were relatively subdued because markets remain focused on potential tariff-related repercussions. China announced additional tariffs of 34% on U.S. goods on Friday, the most serious response in a trade war with President Donald Trump, fuelling recession concerns and triggering a global stock market rout. "Heightened global awareness of trade tensions has increased FX volatility in response to tariff-related factors, evident in China's retaliatory measures pressuring the Australian dollar – risk currency – while supporting the Swiss franc – safe-haven currency," said Shinohara. "However, the employment report had a more limited impact on FX markets, as uncertainty surrounding tariff outcomes remains a dominant market driver." Currency bid prices at 4 April 01:16 p.m. GMT Descripti RIC Last U.S. Pct YTD Pct High Low on Close Change Bid Bid Previous Session Dollar 102.18 102.01 0.18% -5.82% 102.66 101. index 53 Euro/Doll 1.1031 1.1053 -0.18% 6.56% $1.1108 $1.0 ar 964 Dollar/Ye 145.36 146.135 -0.42% -7.52% 146.51 144. n 58 Euro/Yen 160.37 161.41 -0.64% -1.75% 162 159. 62 Dollar/Sw 0.851 0.8594 -0.98% -6.23% 0.8594 0.84 iss 78 Sterling/ 1.3 1.31 -0.74% 3.96% $1.3113 $1.2 Dollar 962 Dollar/Ca 1.4206 1.4097 0.78% -1.2% 1.4243 1.40 nadian 54 Aussie/Do 0.6121 0.6329 -3.26% -1.05% $0.6332 $0.6 llar 05 Euro/Swis 0.9387 0.9492 -1.11% -0.06% 0.9496 0.93 s 68 Euro/Ster 0.8484 0.8432 0.62% 2.55% 0.8507 0.84 ling 32 NZ 0.5649 0.5794 -2.47% 0.99% $0.5797 0.56 Dollar/Do 14 llar Dollar/No 10.5922 10.3188 2.65% -6.81% 10.6111 10.3 rway 066 Euro/Norw 11.6849 11.4046 2.46% -0.71% 11.715 11.4 ay 03 Dollar/Sw 9.9132 9.7647 1.52% -10.02% 9.9854 9.74 eden 51 Euro/Swed 10.9361 10.7931 1.32% -4.63% 11.0066 10.7 en 94 Sign in to access your portfolio
