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Mint
12-06-2025
- Business
- Mint
Dollar hits 7-week lows, focus on rate outlook, trade talks
By Rae Wee and Stefano Rebaudo (Reuters) -The dollar slid on Thursday on heightened expectations of Federal Reserve rate cuts this year and lingering uncertainty over tariff battles. U.S. President Donald Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries, but added the U.S. would send out letters in coming weeks specifying the terms of trade deals to dozens of other countries, which they could then embrace or reject. His comments followed earlier remarks from U.S. Treasury Secretary Scott Bessent that the Trump administration may offer extensions from a July trade deal deadline for countries negotiating in good faith. Uncertainty over what comes next for global trade, alongside scant details of a framework agreement reached between the U.S. and China this week, dampened the overall mood in markets and gave investors more reasons to sell the dollar. The broad fall in the greenback on Thursday pushed the euro to a seven-week high early in the session, before the common currency pared some gains to last trade at $1.1513. Sterling was flat at $1.3544, while the yen climbed 0.4% to 143.95 per dollar. Against a basket of currencies, the dollar fell to its weakest since April 22 at 98.246 and was last down 0.04% at 98.419. U.S. Treasury yields dropped on Wednesday as the closely watched "core" consumer prices index eased some pressure on the Federal Reserve to maintain higher interest rates for longer. Markets priced two Fed rate cuts of 25 basis points by year-end, with an 80% chance of the first move in September and 100 bps by September 2026. However, analysts remain cautious about the inflation outlook ahead of Thursday's release of the producer price index. "We suspect the core Personal Consumption Expenditures Price Index (PCE) reading will prove modestly firmer, although the result will also hinge on the inputs from core PPI," said David Doyle, head of economics at Macquarie. "Despite the subdued figures, through year-end, we expect year-on-year core inflation to remain elevated and potentially rise as price pressures flow from recent tariff implementation." Barclays estimates that May core PCE inflation could register a stronger increase, of 0.22% monthly and 2.7% yearly after incorporating the CPI data. Elsewhere, the dollar slid 0.38% against the Swiss franc to 0.8170. The onshore yuan rose 0.1% to 7.1818 per dollar, though gains were capped by the still-fragile truce in the U.S.-China trade war and the uncertainty surrounding the next moves of the two countries. The euro was clinging to strong gains on Thursday, having jumped against most other currencies in the previous session. Against the yen, the common currency last dropped 0.15% to stand at 165.88 having risen to its strongest since October at 166.42 yen on Thursday. While there was no immediate trigger behind the moves, analysts say the euro has over the past week drawn support from hawkish European Central Bank rhetoric. Last week, the ECB cut interest rates as expected but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target. That contrasts with the likely resumption of a Fed easing cycle later this year, and as Trump has repeatedly called for U.S. rates to be lowered. Trump said last week that a decision on the next Fed chief will be coming soon, adding that a good Fed chair would lower interest rates. The euro has risen nearly 11% for the year thus far, helped in part by a weaker dollar and as investors pour money into European markets in a move away from the U.S. (Reporting by Rae Wee and Stefano Rebaudo; Editing by Jacqueline Wong and Toby Chopra)
Yahoo
12-06-2025
- Business
- Yahoo
Dollar slides on easing trade tensions, Fed expectations
By Rae Wee SINGAPORE (Reuters) -The dollar slid on Thursday on further signs that U.S. President Donald Trump may adopt a softer stance in tariff negotiations and heightened expectations of Federal Reserve rate cuts. Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries before higher U.S. tariffs are imposed. U.S. Treasury Secretary Scott Bessent suggested earlier that the Trump administration may offer extensions from a July trade deal deadline for countries negotiating in good faith. The remarks renewed dollar weakness, lifting the euro to a seven-week high. It last bought $1.1525. The greenback lost 0.43% against the yen and 0.34% against the Swiss franc to last trade at 143.98 and 0.81725, respectively. Against a basket of currencies, the dollar fell to its weakest since April 22 at 98.327. "It's hard to tell whether there is a masterplan behind this, but common sense would suggest that President Trump is trying to create a level of urgency in terms of trade negotiations," said Rodrigo Catril, senior currency strategist at National Australia Bank. "I think the market, in terms of the size of the moves, is becoming a little bit more sanguine about what this all means... the market is also very wary that the picture could change quite dramatically in a week's time or two weeks' time." Elsewhere, sterling was up 0.38% to $1.3588. The Australian dollar ticked up 0.05% to $0.6506, while the New Zealand dollar rose 0.1% to $0.6033. On Wednesday, data showed U.S. consumer prices rose less than expected in May, leading traders to ramp up bets of a Fed cut as early as September and keeping pressure on the dollar. Thursday's producer price index data will be the next test for markets. The offshore yuan was last a touch stronger at 7.1953 per dollar, helped slightly by news that a fragile truce in the U.S.-China trade war was restored as both sides reached a deal following talks in London this week. "Full details have not been published, and it remains unclear if the talks brought the two largest economies closer to productive cooperation," said Mantas Vanagas, senior economist at Westpac. EURO STRENGTH The euro was clinging to strong gains on Thursday, having jumped against most other currencies in the previous session. Against the yen, the common currency last stood at 165.88 having risen to its firmest since October at 166.42 on Thursday. It was up 0.13% against the Aussie, extending a 0.9% gain from Thursday, and had also touched a one-month high of 84.88 pence overnight. While there was no immediate trigger behind the moves, analysts say the euro has over the past week drawn support from hawkish European Central Bank (ECB) rhetoric. Last week, the ECB cut interest rates as expected but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target. "Expectations of fewer previously expected ECB rate cuts have lent some support to the euro," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. That contrasts with the likely resumption of a Fed easing cycle later this year, and as Trump has repeatedly called for U.S. rates to be lowered. Trump said last week that a decision on the next Fed chief will be coming soon, adding that a good Fed chair would lower interest rates. The euro has risen nearly 11% for the year thus far, helped in part by a weaker dollar and as investors pour money into European markets in a move away from the U.S. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
Dollar slides on easing trade tensions, Fed expectations
By Rae Wee SINGAPORE (Reuters) -The dollar slid on Thursday on further signs that U.S. President Donald Trump may adopt a softer stance in tariff negotiations and heightened expectations of Federal Reserve rate cuts. Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries before higher U.S. tariffs are imposed. U.S. Treasury Secretary Scott Bessent suggested earlier that the Trump administration may offer extensions from a July trade deal deadline for countries negotiating in good faith. The remarks renewed dollar weakness, lifting the euro to a seven-week high. It last bought $1.1525. The greenback lost 0.43% against the yen and 0.34% against the Swiss franc to last trade at 143.98 and 0.81725, respectively. Against a basket of currencies, the dollar fell to its weakest since April 22 at 98.327. "It's hard to tell whether there is a masterplan behind this, but common sense would suggest that President Trump is trying to create a level of urgency in terms of trade negotiations," said Rodrigo Catril, senior currency strategist at National Australia Bank. "I think the market, in terms of the size of the moves, is becoming a little bit more sanguine about what this all means... the market is also very wary that the picture could change quite dramatically in a week's time or two weeks' time." Elsewhere, sterling was up 0.38% to $1.3588. The Australian dollar ticked up 0.05% to $0.6506, while the New Zealand dollar rose 0.1% to $0.6033. On Wednesday, data showed U.S. consumer prices rose less than expected in May, leading traders to ramp up bets of a Fed cut as early as September and keeping pressure on the dollar. Thursday's producer price index data will be the next test for markets. The offshore yuan was last a touch stronger at 7.1953 per dollar, helped slightly by news that a fragile truce in the U.S.-China trade war was restored as both sides reached a deal following talks in London this week. "Full details have not been published, and it remains unclear if the talks brought the two largest economies closer to productive cooperation," said Mantas Vanagas, senior economist at Westpac. EURO STRENGTH The euro was clinging to strong gains on Thursday, having jumped against most other currencies in the previous session. Against the yen, the common currency last stood at 165.88 having risen to its firmest since October at 166.42 on Thursday. It was up 0.13% against the Aussie, extending a 0.9% gain from Thursday, and had also touched a one-month high of 84.88 pence overnight. While there was no immediate trigger behind the moves, analysts say the euro has over the past week drawn support from hawkish European Central Bank (ECB) rhetoric. Last week, the ECB cut interest rates as expected but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target. "Expectations of fewer previously expected ECB rate cuts have lent some support to the euro," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. That contrasts with the likely resumption of a Fed easing cycle later this year, and as Trump has repeatedly called for U.S. rates to be lowered. Trump said last week that a decision on the next Fed chief will be coming soon, adding that a good Fed chair would lower interest rates. The euro has risen nearly 11% for the year thus far, helped in part by a weaker dollar and as investors pour money into European markets in a move away from the U.S. 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
Daily Maverick
10-06-2025
- Business
- Daily Maverick
Stocks rise, dollar tentative ahead of US-China talks outcome
Investors hold nerve ahead of details from U.S.-China talks Stocks gain, dollar pares some losses JGB yields fall from record highs By Rae Wee and Johann M Cherian SINGAPORE, June 10 (Reuters) – Stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing. US President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume at 0900 GMT on Tuesday. 'The fact that we're still up here near record highs, does suggest that we are seeing the market accept what has been said by Trump and when you look at some of the other comments from Lutnick and Bessent, to me it seems to suggest that they are relatively happy with the progress,' said Tony Sycamore, a market analyst at IG. 'But the market always likes to see some concrete announcements.' As Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer were set to meet for the second day with their Chinese counterparts, much of investors' focus has been on the progress of the talks. Any progress in the negotiations is likely to provide relief to markets given Trump's chaotic tariffs and swings in Sino-U.S. trade ties have undermined the world's two biggest economies and hobbled global growth. Stocks advanced in Asia, extending their rise from the start of the week. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5%, while Nasdaq futures gained 0.62%. S&P 500 futures edged 0.43% higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1% each. In Tokyo, attention was also on the Japanese government bond (JGB) market, following news that Japan is considering buying back some super-long government bonds issued in the past at low interest rates. The yield on the 10-year JGB fell one basis point to 1.46% in early trade, while the 30-year yield slid 5 bps to 2.86%. Yields on super-long JGBs rose to levels last month due to dwindling demand from traditional buyers such as life insurers, and jitters over steadily rising debt levels globally. 'The volatility at the super-long segment of the curve stems from a supply-demand imbalance that has been brewing since the BOJ embarked on balance sheet normalisation,' said Justin Heng, APAC rates strategist at HSBC Global Investment Research. Japanese Finance Minister Katsunobu Kato said on Tuesday the government will conduct appropriate debt management policies while communicating closely with market participants. In currencies, the dollar attempted to regain its footing after falling on Monday. Against the yen, the dollar was up 0.45% to 145.25. The euro fell 0.28% to $1.1387 while sterling slipped 0.2% to $1.3523. Trump's erratic trade policies and worries over Washington's growing debt pile have dented investor confidence in US assets, in turn undermining the dollar, which has already fallen more than 8% for the year. The next test for the greenback will be on Wednesday, when US inflation data comes due. Expectations are for core consumer prices to have picked up slightly in May, which could push back against bets of imminent Federal Reserve rate cuts. The producer price index (PPI) report will be released a day later. 'May's US CPI and PPI data will be scrutinised for signs of lingering inflationary pressures,' said Convera's FX and macro strategist Kevin Ford. 'If core CPI remains elevated, expectations for rate cuts could be pushed beyond the June 18 FOMC meeting.' Traders see the Fed keeping rates on hold at its policy meeting next week, but have priced in roughly 44 bps worth of easing by December. In the oil market, prices edged up, with Brent crude futures gaining 0.24% to $67.20 a barrel. US West Texas Intermediate crude was last up 0.25% at $65.45 per barrel after hitting a more than two-month high earlier in the session.
Yahoo
10-06-2025
- Business
- Yahoo
Stocks rise, dollar tentative ahead of US-China talks outcome
By Rae Wee and Johann M Cherian SINGAPORE (Reuters) - Stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing. U.S. President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume at 0900 GMT on Tuesday. "The fact that we're still up here near record highs, does suggest that we are seeing the market accept what has been said by Trump and when you look at some of the other comments from Lutnick and Bessent, to me it seems to suggest that they are relatively happy with the progress," said Tony Sycamore, a market analyst at IG. "But the market always likes to see some concrete announcements." As Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer were set to meet for the second day with their Chinese counterparts, much of investors' focus has been on the progress of the talks. Any progress in the negotiations is likely to provide relief to markets given Trump's chaotic tariffs and swings in Sino-U.S. trade ties have undermined the world's two biggest economies and hobbled global growth. Stocks advanced in Asia, extending their rise from the start of the week. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5%, while Nasdaq futures gained 0.62%. S&P 500 futures edged 0.43% higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1% each. In Tokyo, attention was also on the Japanese government bond (JGB) market, following news that Japan is considering buying back some super-long government bonds issued in the past at low interest rates. The yield on the 10-year JGB fell one basis point to 1.46% in early trade, while the 30-year yield slid 5 bps to 2.86%. Yields on super-long JGBs rose to record levels last month due to dwindling demand from traditional buyers such as life insurers, and jitters over steadily rising debt levels globally. "The volatility at the super-long segment of the curve stems from a supply-demand imbalance that has been brewing since the BOJ embarked on balance sheet normalisation," said Justin Heng, APAC rates strategist at HSBC Global Investment Research. Japanese Finance Minister Katsunobu Kato said on Tuesday the government will conduct appropriate debt management policies while communicating closely with market participants. In currencies, the dollar attempted to regain its footing after falling on Monday. Against the yen, the dollar was up 0.45% to 145.25. The euro fell 0.28% to $1.1387 while sterling slipped 0.2% to $1.3523. Trump's erratic trade policies and worries over Washington's growing debt pile have dented investor confidence in U.S. assets, in turn undermining the dollar, which has already fallen more than 8% for the year. The next test for the greenback will be on Wednesday, when U.S. inflation data comes due. Expectations are for core consumer prices to have picked up slightly in May, which could push back against bets of imminent Federal Reserve rate cuts. The producer price index (PPI) report will be released a day later. "May's U.S. CPI and PPI data will be scrutinised for signs of lingering inflationary pressures," said Convera's FX and macro strategist Kevin Ford. "If core CPI remains elevated, expectations for rate cuts could be pushed beyond the June 18 FOMC meeting." Traders see the Fed keeping rates on hold at its policy meeting next week, but have priced in roughly 44 bps worth of easing by December. In the oil market, prices edged up, with Brent crude futures gaining 0.24% to $67.20 a barrel. [O/R] U.S. West Texas Intermediate crude was last up 0.25% at $65.45 per barrel after hitting a more than two-month high earlier in the session. Spot gold fell 0.5% to $3,310.40 an ounce. [GOL/] 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
