AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

TOKYO: The dollar steadied on Wednesday after it seesawed with bond market volatility as investors scrutinised US economic indicators, Federal Reserve commentary and corporate earnings for clues about the path for interest rates.

The dollar index - which gauges the greenback against six major peers - ticked up 0.11% to 101.83 in Asian trading, following a 0.36% slide on Tuesday that reversed the 0.54% rally of the session before. On Friday, the index had dipped to a one-year low at 100.78.

US two-year Treasury yields, which are extremely sensitive to Fed expectations, reached an almost one-month high of 4.231% overnight, and remained elevated in Tokyo trading on Wednesday.

St. Louis Fed chief James Bullard told Reuters in an interview that he leans toward 75 bps of additional tightening, versus market consensus for one more 25 bp hike next month and then the potential for cuts later this year.

By contrast, Atlanta Fed President Raphael Bostic said in an interview with CNBC that he expects just one more quarter point hike, followed by an extended pause.

“The market is pretty much resigned to a 25 bps hike at the May meeting, so it’s more the ebb and flow of expectations about rate cuts this year that’s causing US bond market volatility,” said Ray Attrill, head of foreign-exchange strategist at National Australia Bank.

“It’s the volatility in the bond market that’s driving the dollar, not the other way round.”

The dollar’s decline on Tuesday was also helped by reduced demand for its safety after what Attrill called “blockbuster” Chinese economic growth data that day, which buoyed the risk-sensitive Australian currency.

The Aussie eased 0.06% to $0.67245 on Wednesday, following a 0.41% rally in the prior session.

Dollar firm on Fed rate hike view, focus on China

The euro was steady at $1.09725 after Tuesday’s 0.42% rise.

Sterling slipped 0.09% to $1.2413 following the previous day’s 0.38% advance. The dollar gained 0.17% to 134.31 yen, recovering from a 0.29% retreat on Tuesday.

“A key driving force that used to support the broad USD -i.e. weakening global growth - has been fading, if not neutralised,” HSBC analysts wrote in a client note.

“Its decline is likely to be larger than some may think.”

Comments

Comments are closed.