AIRLINK 197.79 Decreased By ▼ -0.18 (-0.09%)
BOP 10.00 Decreased By ▼ -0.04 (-0.4%)
CNERGY 7.28 Decreased By ▼ -0.01 (-0.14%)
FCCL 36.15 Increased By ▲ 0.15 (0.42%)
FFL 16.94 Increased By ▲ 0.03 (0.18%)
FLYNG 25.21 Increased By ▲ 0.17 (0.68%)
HUBC 134.30 Increased By ▲ 0.27 (0.2%)
HUMNL 14.11 Decreased By ▼ -0.03 (-0.21%)
KEL 4.75 Decreased By ▼ -0.03 (-0.63%)
KOSM 6.95 Increased By ▲ 0.01 (0.14%)
MLCF 45.20 Increased By ▲ 0.22 (0.49%)
OGDC 218.58 Increased By ▲ 0.35 (0.16%)
PACE 6.97 Increased By ▲ 0.03 (0.43%)
PAEL 41.01 Decreased By ▼ -0.41 (-0.99%)
PIAHCLA 16.85 Decreased By ▼ -0.01 (-0.06%)
PIBTL 8.50 Increased By ▲ 0.04 (0.47%)
POWER 9.41 Increased By ▲ 0.02 (0.21%)
PPL 185.00 Decreased By ▼ -0.93 (-0.5%)
PRL 41.00 Decreased By ▼ -0.27 (-0.65%)
PTC 24.98 Increased By ▲ 0.21 (0.85%)
SEARL 103.13 Decreased By ▼ -1.52 (-1.45%)
SILK 1.03 Increased By ▲ 0.02 (1.98%)
SSGC 40.48 Decreased By ▼ -0.43 (-1.05%)
SYM 17.72 Decreased By ▼ -0.33 (-1.83%)
TELE 8.85 Decreased By ▼ -0.06 (-0.67%)
TPLP 12.80 Decreased By ▼ -0.04 (-0.31%)
TRG 67.18 Increased By ▲ 0.58 (0.87%)
WAVESAPP 11.36 Increased By ▲ 0.06 (0.53%)
WTL 1.77 Decreased By ▼ -0.01 (-0.56%)
YOUW 4.00 Decreased By ▼ -0.01 (-0.25%)
BR100 12,101 Decreased By -8.5 (-0.07%)
BR30 36,561 Decreased By -36.9 (-0.1%)
KSE100 114,910 Decreased By -131.9 (-0.11%)
KSE30 36,145 Decreased By -54.7 (-0.15%)
Markets

Dollar recovers from Trump impeachment damage, trade tensions hit yuan, Aussie

The launch of a formal impeachment inquiry against US President Donald Trump while renewed global trade tensions we
Published September 25, 2019
  • The launch of a formal impeachment inquiry against US President Donald Trump while renewed global trade tensions weighed on the Chinese yuan and Australian dollar.
  • The announcement that the House of Representatives would initiate a formal impeachment inquiry and disappointing consumer confidence data also weighed on the greenback.

LONDON: The dollar recovered on Wednesday after being hit a day earlier by the launch of a formal impeachment inquiry against US President Donald Trump while renewed global trade tensions weighed on the Chinese yuan and Australian dollar.

The US currency dropped on Tuesday after the announcement that the House of Representatives would initiate a formal impeachment inquiry and disappointing consumer confidence data also weighed on the greenback.

But the world's most liquid currency rebounded on Wednesday.

Adam Cole, a currency analyst at RBC Capital Markets, said the immediate reaction to sell the dollar was questionable.

"For a couple of reasons it's not a sell risk or sell dollar story," he said, pointing to the very small chance that Trump would be impeached, and his view that if the president left office it would not necessarily be positive for risky assets.

Some market players, however, said more domestic instability would consume Trump's political capital, making it harder for him to compromise with China on trade or boost spending ahead of a presidential election next year.

"Increasing US political uncertainty may dampen the outlook further, as it reduces the already low probability of the US economy benefitting from a pre-election fiscal impulse," Morgan Stanley analysts said in a note.

The dollar index climbed 0.2pc to 98.545.

Against the euro, it rose 0.2pc to $1.0999.

Comments

Comments are closed.