Latest news with #BloombergDollarSpotIndex
Yahoo
2 days ago
- Business
- Yahoo
The Dollar Is Hanging On to Its Haven Role by a Thread, Survey Shows
(Bloomberg) -- The escalating Middle East conflict is likely to help the dollar hold on to its haven role — but only just, the latest Bloomberg Pulse survey shows. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown A little more than half of 251 respondents think the US currency will regain its status as a safe asset as Iran and Israel continue to carry out attacks on each other. Yet participants also see the Bloomberg Dollar Spot Index falling over the next month, according to the poll conducted June 13-18. 'While we expect further dollar weakness, investors now perceive more two-way risks,' Goldman Sachs Group Inc. strategists including Christian Mueller-Glissmann and Michael Cahill wrote in a note to clients. 'Some argue the depreciation may be overdone, especially given resilient US asset returns.' The divergence underscores a shift in perceptions of the greenback, as global investors grow more averse to President Donald Trump's policies. While geopolitical tensions in the past week have limited its decline, sentiment toward the US currency remains overwhelmingly bearish. The share of respondents expecting Bloomberg's dollar gauge to fall over the next month is the smallest since February, according to Pulse survey data. The index was set for its first weekly gain since May. Beyond the revival of haven demand, the greenback also received support from a Federal Reserve policy decision on Wednesday, where Chair Jerome Powell warned of the inflationary impact of tariffs and said policymakers don't have great conviction in their outlook for lower rates. All the same, this week's advance barely dents the greenback's battering this year. It has lost more than 11% against the euro and about 8% against the Japanese yen so far this year. A weaker dollar is here to stay, according to Invesco Ltd. Senior Portfolio Manager Kristina Campmany. Recent shakeups in US policy mean that there's now a premium for holding the currency, Campmany said earlier this month at Bloomberg's Money & Macro: An Evening with Markets Live event in New York. As for Treasuries, higher oil prices resulting from the Middle East conflict will add to price pressures that will temper the bond rally — that's according to 49% of survey respondents. About a third said the crude spike will have no effect on US debt. The appeal of Treasuries in times of turmoil was clear. When asked which asset will deliver better volatility-adjusted returns over the next month, 54% of respondents favored bonds over US stocks. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? 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. 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
Mint
6 days ago
- Business
- Mint
Gold Edges Toward Record High as Mideast War Drives Haven Bids
Gold rose toward a record high as an escalating conflict between Israel and Iran drove investors toward haven assets. The precious metal climbed as much as 0.6% in Asia to near $3,450 an ounce, about $50 short of an all-time peak set in April. The two countries hit each other with barrages of missile and drones over the weekend, with the hostilities pushing up energy prices on the threat to energy infrastructure and transport in the region. The sudden upsurge of geopolitical risk has added more impetus to a rally that's primarily been driven by the threat to global economic growth from President Donald Trump's aggressive tariff agenda. Gold has rallied more than 30% in 2025, with central banks seeking to diversify away from the dollar being another significant driver. 'Prices are still very close to the record, and given the geopolitical situation any further escalation will push them higher,' said John Feeney, an analyst at Guardian Gold Australia. 'Gold has performed very well as a haven recently, and it seems a lot of investors are moving funds out of US bonds and into the metal over the longer term.' The 1.4% jump in the precious metal on Friday came after a two-day gain as weak US inflation and jobs data fueled bets the Federal Reserve will cut interest rates later this year. Lower rates tend to benefit bullion as it doesn't pay any interest. Spot gold rose 0.3% to $3,441.35 an ounce as of 9:14 a.m. in Singapore. The Bloomberg Dollar Spot Index added 0.1% after dropping 0.8% last week. Silver edged lower, while platinum and palladium advanced. This article was generated from an automated news agency feed without modifications to text.
Business Times
15-06-2025
- Business
- Business Times
US dollar's tepid rebound reinforces questions around haven role
The US dollar's muted rally against major peers after Israel's strikes on Iran reinforced the impression that the greenback's role as a global haven currency is fading. A Bloomberg gauge of the US dollar gained as much as 0.6 per cent at one point on Friday (Jun 13) after Israel's attacks on Iranian nuclear facilities stoked fears of a wider conflict in the Middle East. However, the currency pared much of its advance and closed some 0.2 per cent higher in New York. The modest recovery leaves the greenback just above the three-year low it hit last week after President Donald Trump threatened fresh levies against global trading partners. The US dollar has slid during the past five months as Trump pushed ahead with tariffs, which have raised concerns over the US economic outlook and fuelled speculation that foreigners will shun American assets – the so-called Sell America trade. 'Middle East tensions are a risk to navigate rather than a game changer for the bearish dollar view,' JPMorgan strategists including Meera Chandan and Arindam Sandilya said to clients in a note on Friday. 'We do not expect the dollar impact to be more pronounced or durable than this at this stage.' The day's trading pattern was a far cry from decades past, when international crises would typically fuel gains in the greenback and Treasuries, long considered havens in part because of their liquidity and confidence in the US as a leader in the global economy. The 10-year US Treasury yield rose about five basis points on Friday as surging oil prices stoked inflation worries. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up There are some signs that the gloomy stance towards the US dollar is easing a bit. For example, options traders, while still broadly bearish on the US currency's prospects, have moderated their negative views in recent weeks and are banking on a pause in the greenback's sharp decline. 'The source of shocks to global risk and growth have been more concentrated in the US so far this year,' Goldman Sachs strategists Stuart Jenkins, Kamakshya Trivedi and Teresa Alves said in a report to clients on Friday. 'If that source were to shift more to the rest of the world, the dollar may resume trading with more safe-haven type characteristics.' The US' position as the world's largest oil producer likely helped to buoy the US dollar on Friday as crude futures soared, analysts said. So did the possibility of a squeeze in short positions against the greenback. The Bloomberg Dollar Spot Index has dropped about 8 per cent this year as Trump's efforts to overhaul global trade chipped away at investor confidence in the US economy. There are also projections that proposed tax legislation will add trillions of dollars to the federal deficit, while America's role in security and political alliances is being called into question as well. 'Dollar sentiment has taken a real hit,' Sonja Marten, DZ Bank's head of FX and monetary policy, told Bloomberg Television on Friday. It would take 'a complete escalation in the Middle East' to extend the US dollar's gains, she said. At cross-border payments firm Corpay, chief market strategist Karl Schamotta said the risk-off tone permeating markets reminded investors that the US dollar's losses this year are more a reflection of long-term growth concerns – and less so of any change in short-term demand for the liquidity of US assets. Before the attack, Wall Street banks were reinforcing their calls on further US dollar weakness. Paul Tudor Jones, the founder of macro hedge fund Tudor Investment, said the US currency may be 10 per cent lower a year from now as he expects to see short-term interest rates cut 'dramatically' in the next year. Hedge funds, asset managers and other speculative traders boosted their bets tied to the US dollar's decline to some US$15.9 billion for the week through Jun 10, up from US$12.2 billion the week prior, according to data by the Commodity Futures Trading Commission released on Friday. BLOOMBERG
Time of India
13-06-2025
- Business
- Time of India
Oil jumps & slips, dollar dips to lowest level in 3 years
Oil retreated from its surge over West Asia tensions as traders weigh the latest developments in the region against a risk-off mood triggered by renewed tariff threats from Washington. At the same time, the dollar fell to the weakest level in three years amid worries over the outlook for the US economy . The Bloomberg Dollar Spot Index slid as much as 0.8 per cent on Thursday to the lowest level since April 2022. The euro jumped to the strongest since 2021, while the British pound advanced to a new three-year high. So far in 2025, the dollar is down more than 8 per cent as investors build up bets that US President Donald Trump's trade and tax policies will weigh on the economy. The concern remains that the US could experience a spike in inflation and start sliding toward a recession amid Trump's sweeping tariffs on imports. This has investors poring over incoming economic data, especially on the labour market, to determine the path of rates in the US. Brent slipped near $69 a barrel after jumping 4.3 per cent on Wednesday, the most since Oct, with signs the rally was overstretched. Crude shot up after Iran threatened to strike US bases if nuclear talks fell through and the US told some staff to depart the embassy in Iraq. The UK Navy issued a warning to ships sailing across the Strait of Hormuz , through which over a quarter of the world's oil travels. On the trade front, Trump said he intended to send letters to trading partners in the next one to two weeks setting unilateral tariff rates, ahead of a July 9 deadline to reimpose higher duties on dozens of economies. That blunted appetite for risk assets.
Yahoo
13-06-2025
- Business
- Yahoo
Gold Extends Advance After Israel Attacks Iran's Nuclear Program
(Bloomberg) -- Gold advanced alongside other financial assets after Israel conducted airstrikes targeting Iran's nuclear sites, raising concerns over an escalation of hostilities in the Middle East. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban Do World's Fairs Still Matter? NY Long Island Rail Service Resumes After Grand Central Fire Bullion climbed as much as 1.3% following news of the attacks. Explosions were heard in Tehran, according to videos and local media, and Israeli Defense Minister Israel Katz said the nation was anticipating a retaliatory strike from Iran. The US said it was 'not involved' in the operation. The move higher extended a two-day gain, after weak US inflation and jobs data fueled bets that the Federal Reserve will lower interest rates later this year. A report on Thursday showed US producer price inflation remained muted in May, while a separate print showed recurring applications for unemployment benefits rose to the highest since the end of 2021. Gold has rallied 30% this year, with investors increasingly seeking safety in the haven asset due to concerns over President Donald Trump's aggressive trade policy and geopolitical tensions, including in Ukraine. Strong demand from central banks and sovereign institutions has also supported prices. Israel's attack on Iran followed repeated warnings from Prime Minister Benjamin Netanyahu about striking the OPEC producer and crippling its nuclear program. US and Iranian negotiators are scheduled to hold a round of talks in Oman on Sunday about Tehran's atomic program, but Trump said this week that he's less confident about the chances of a deal. Spot gold was 1.1% higher at $3,424.59 an ounce as of 9:25 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.2%. Silver was little changed, platinum tumbled and palladium was lower. American Mid: Hampton Inn's Good-Enough Formula for World Domination New Grads Join Worst Entry-Level Job Market in Years The Spying Scandal Rocking the World of HR Software US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom As Companies Abandon Climate Pledges, Is There a Silver Lining? ©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
