Latest news with #RodrigoCatril
Zawya
3 days ago
- Business
- Zawya
Dollar lingers near six-week low as trade war wears on US economy
The dollar hovered near six-week lows on Tuesday, as mounting evidence of economic damage from the trade war waged by President Donald Trump's administration weighed on sentiment. While global equity markets have broadly recovered in the wake of the on-again, off-again saga of Trump's tariff threats, the greenback remains firmly on the back foot. Factory and jobs data in the coming days may give further signs of the toll that trade uncertainty is wreaking on the world's biggest economy. U.S. duties on imported steel and aluminium are set to double to 50% starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations. "What this whole dynamic is basically saying is trade tensions are not really improving in that regard, and we've seen the dollar getting hammered widely," said Rodrigo Catril, senior FX strategist at National Australia Bank. "Interestingly, the Aussie and the kiwi have been the good performers this time around." The dollar index, which measures the U.S. currency against six others, touched 98.58, the lowest since late April, before rising 0.5%. The dollar was up 0.26% against the yen at 143.075. The euro fell 0.44% to $1.1392, having briefly touched a six-week high of $1.1454. Data earlier showed inflation in the euro zone slowed below the European Central Bank's target of 2%, underpinning expectations for a rate cut later this week. The dollar sank broadly on Monday after data showed U.S. manufacturing contracted for a third month in May and tariff snarls meant suppliers took longer to deliver goods. Attention now turns to U.S. factory order numbers on Tuesday, followed by jobs data later in the week. The dollar got some respite last week, rising 0.3% after trade talks with the European Union got back on track and a U.S. trade court blocked the bulk of Trump's tariffs. An appeals court reinstated the duties a day later, and Trump's administration said it had other avenues to implement them if it loses in court. Trump and Chinese President Xi Jinping were likely to have a call soon to iron out trade differences, Treasury Secretary Scott Bessent said on Sunday, although on Monday there was an angry rejection from China's Commerce Ministry of U.S. accusations that Beijing violated their trade agreement. "Trade developments remain crucial. Reports suggest China is gaining leverage over the U.S. through its control of chip supply chains and rare earths," ING strategist Francesco Pesole said. "Trump and Xi Jinping are set to speak this week, and past direct talks have sometimes eased tensions. That leaves room for a positive surprise that could help the dollar at some point this week," he said. Fiscal worries have also given rise to a broad "sell America" theme that has seen dollar assets from stocks to Treasury bonds dropping in recent months. Those concerns come into sharp focus this week as the Senate starts considering the administration's tax cut and spending bill, estimated to add $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade. (Reporting by Rocky Swift; Editing by Sonali Paul, Jacqueline Wong and David Evans)
Zawya
4 days ago
- Business
- Zawya
Dollar holds near six-week low as trade war wears on US economy
TOKYO - The dollar touched a six-week low on Tuesday on signs of fragility in the U.S. economy because of damage from the trade war President Donald Trump's administration is waging. While global equity markets have broadly recovered in the wake of the on-again, off-again saga of Trump's tariff threats, the greenback remains firmly on its back. Factory and jobs data in the United States in the coming days may give further signs of the toll that trade uncertainty is wreaking on the world's biggest economy. U.S. duties on imported steel and aluminum are set to double to 50% starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations. "What this whole dynamic is basically saying is trade tensions are not really improving in that regard, and we've seen the dollar getting hammered widely," said Rodrigo Catril, senior FX strategist at National Australia Bank. "Interestingly, the Aussie and the kiwi have been the good performers this time around." The dollar index, which measures the U.S. currency against six major peers, touched 98.58, the lowest since late April, before rebounding 0.3%. The greenback rallied 0.3% to 143.21 yen. The euro slid 0.2% after briefly touching a six-week high of $1.1454. Later in the week, the focus will be on the European Central Bank's interest rate decision and subsequent outlook. New Zealand's kiwi reached $0.6054, a new high for the year, before retreating 0.4%. The dollar index sank 0.8% on Monday after data showed U.S. manufacturing contracted for a third month in May and tariff snarls meant suppliers took longer to deliver goods. Attention now turns to U.S. factory order numbers on Tuesday, along with jobs figures due later in the week. The dollar got some respite last week, rising 0.3% after trade talks with the European Union got back on track and a U.S. trade court blocked the bulk of Trump's tariffs. An appeals court reinstated the duties a day later, and Trump's administration said it had other avenues to implement them if it loses in court. Trump and Chinese President Xi Jinping were likely to have a call soon to iron out trade differences, Treasury Secretary Scott Bessent said on Sunday, although Monday saw an angry rejection from China's Commerce Ministry of U.S. accusations that Beijing violated their trade agreement. Fiscal worries have also given rise to a broad "sell America" theme that has seen dollar assets from stocks to Treasury bonds dropping in recent months. Those concerns come into sharp focus this week as the Senate starts considering the administration's tax cut and spending bill, estimated to add $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade. (Reporting by Rocky Swift; Editing by Christian Schmollinger and Sonali Paul)
CNA
4 days ago
- Business
- CNA
Dollar holds near six-week low as trade war wears on US economy
TOKYO :The dollar fell to a six-week low on Tuesday on signs of fragility in the U.S. economy because of damage from the trade war President Donald Trump's administration is waging. While global equity markets have broadly recovered in the wake of the on-again, off-again saga of Trump's tariff threats, the greenback remains firmly on its back. Factory and jobs data in the United States in the coming days may give further signs of the toll that trade uncertainty is wreaking on the world's biggest economy. U.S. duties on imported steel and aluminum are set to double to 50 per cent starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations. "What this whole dynamic is basically saying is trade tensions are not really improving in that regard, and we've seen the dollar getting hammered widely," said Rodrigo Catril, senior FX strategist at National Australia Bank. "Interestingly, the Aussie and the kiwi have been the good performers this time around." The dollar index, which measures the U.S. currency against six major peers, was little changed after touching 98.58, the lowest since late April, when it fell to a three-year trough. The greenback was at 142.71 yen, near a one-week low. The euro was barely changed at $1.1446 after briefly touching a six-week high of $1.1454. Later in the week, the focus will be on the European Central Bank's interest rate decision and subsequent outlook. New Zealand's kiwi dollar added 0.1 per cent to $0.6045, a new high for the year. The Australian dollar was little changed at $0.64951. The dollar index sank 0.8 per cent on Monday after data showed U.S. manufacturing contracted for a third month in May and tariff snarls meant suppliers took longer to deliver goods. Attention now turns to U.S. factory order numbers on Tuesday, along with jobs figures due later in the week. The dollar got some respite last week, rising 0.3 per cent after trade talks with the European Union got back on track and a U.S. trade court blocked the bulk of Trump's tariffs. An appeals court reinstated the duties a day later, and Trump's administration said it had other avenues to implement them if it loses in court. Fiscal worries have also given rise to a broad "sell America" theme that has seen dollar assets from stocks to Treasury bonds dropping in recent months. Those concerns come into sharp focus this week as the Senate starts considering the administration's tax cut and spending bill, estimated to add $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade.
Reuters
4 days ago
- Business
- Reuters
Dollar holds near six-week low as trade war wears on US economy
TOKYO, June 3 (Reuters) - The dollar fell to a six-week low on Tuesday on signs of fragility in the U.S. economy because of damage from the trade war President Donald Trump's administration is waging. While global equity markets have broadly recovered in the wake of the on-again, off-again saga of Trump's tariff threats, the greenback remains firmly on its back. Factory and jobs data in the United States in the coming days may give further signs of the toll that trade uncertainty is wreaking on the world's biggest economy. U.S. duties on imported steel and aluminum are set to double to 50% starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations. "What this whole dynamic is basically saying is trade tensions are not really improving in that regard, and we've seen the dollar getting hammered widely," said Rodrigo Catril, senior FX strategist at National Australia Bank. "Interestingly, the Aussie and the kiwi have been the good performers this time around." The dollar index , which measures the U.S. currency against six major peers, was little changed after touching 98.58, the lowest since late April, when it fell to a three-year trough. The greenback was at 142.71 yen , near a one-week low. The euro was barely changed at $1.1446 after briefly touching a six-week high of $1.1454. Later in the week, the focus will be on the European Central Bank's interest rate decision and subsequent outlook. New Zealand's kiwi dollar added 0.1% to $0.6045 , a new high for the year. The Australian dollar was little changed at $0.64951 . The dollar index sank 0.8% on Monday after data showed U.S. manufacturing contracted for a third month in May and tariff snarls meant suppliers took longer to deliver goods. Attention now turns to U.S. factory order numbers on Tuesday, along with jobs figures due later in the week. The dollar got some respite last week, rising 0.3% after trade talks with the European Union got back on track and a U.S. trade court blocked the bulk of Trump's tariffs. An appeals court reinstated the duties a day later, and Trump's administration said it had other avenues to implement them if it loses in court. Fiscal worries have also given rise to a broad "sell America" theme that has seen dollar assets from stocks to Treasury bonds dropping in recent months. Those concerns come into sharp focus this week as the Senate starts considering the administration's tax cut and spending bill, estimated to add $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade.
Free Malaysia Today
13-05-2025
- Business
- Free Malaysia Today
Dollar holds gains, yuan jumps from US-China trade pact
Against a basket of currencies, the US dollar hovered near a one-month high and was last at 101.54. (Freepik pic) SINGAPORE : The US dollar retreated slightly today but held most of its gains on lingering optimism over a tariff deal between the US and China, which tapped the brakes on a trade war between the world's two largest economies. Yesterday, Washington and Beijing announced an agreement to slash the massive tariffs they had imposed on each other for 90 days, sparking a relief rally across markets that swept up global stocks and sent the dollar surging. 'It's way better than the market was expecting,' said Rodrigo Catril, senior FX strategist at National Australia Bank. 'It's just an indication of, for one, the US administration is quite sensitive to the impact (tariffs are) having on the economy, and some would say there's been a serious walk back in terms of what they've done,' Catril said. China's yuan scaled a six-month high, peaking at 7.1855 per dollar, which in turn lifted the Australian and New Zealand dollars. The Aussie was up 0.64% to US$0.6412, while the kiwi gained 0.55% to US$0.5889. The two Antipodean currencies are often used as liquid proxies for the yuan. Elsewhere, the yen and the euro were recovering from their steep falls against a resurgent dollar in the previous session. The yen was up 0.48% at 147.76 per dollar, having tumbled more than 2% yesterday. Similarly, the euro rose 0.25% to US$1.1114, after sliding 1.4% overnight. 'In terms of magnitude, I think it's fair to say that the big moves have been seen. But for scope for an extension of the moves, I think particularly the euro and the yen will have a bias for those moves to extend a little bit further over the coming weeks,' Catril said. The dollar fell 0.25% against the Swiss franc to 0.8429, reversing some of yesterday's 1.6% jump. Sterling ticked up 0.16% to US$1.3199. Against a basket of currencies, the dollar hovered near a one-month high and was last at 101.54. The de-escalation of US-China trade tensions has in turn led traders to pare back bets of Federal Reserve rate cuts, on the view that policymakers would be under less pressure to ease monetary policy to support growth. US Treasury yields rose in tandem, with the two-year yield steadying near a one-month high at 4.009%, while the benchmark 10-year yield was last at 4.4650%. Futures show markets are now pricing in just about 56 basis points of Fed cuts by December. 0#USDIRPR 'The Fed has been focused on the increase in uncertainty. This will remain the case, although the announcement may remove some of the downside risk that had been prevalent had the higher tariff rates remained in effect,' said David Doyle, head of economics at Macquarie. Data on US inflation is due later today, where expectations are for the core and headline numbers to have picked up on a monthly basis in April. In cryptocurrencies, Bitcoin last traded at US$102,600, after surging to its highest since Jan 31 in the previous session. Ether eased 1.1% to US$2,458.36, but strayed not too far from a more than two-month high hit yesterday.
