{"id":22120,"date":"2023-04-25T20:35:24","date_gmt":"2023-04-25T20:35:24","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/euro-to-the-fore\/"},"modified":"2023-04-25T20:40:12","modified_gmt":"2023-04-25T20:40:12","slug":"us-dollar-yen-gain","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/us-dollar-yen-gain\/","title":{"rendered":"US dollar, yen gain as risk appetite sours"},"content":{"rendered":"

By Gertrude Chavez-Dreyfuss<\/p>\n

NEW YORK (Reuters) – The safe-haven dollar and yen rose on Tuesday as market sentiment turned risk-averse amid renewed worries about the banking sector and the outlook for the global economy, which knocked the euro off a nearly 10-month high. <\/p>\n

The U.S. dollar index climbed 0.6% to 101.83, having dropped more than 4% since March 8.<\/p>\n

“Lower risk appetite is clearly the main driver here for the dollar and for other havens as well,” said Shaun Osborne, chief FX strategist, at Scotiabank in Toronto.<\/p>\n

“But we’re not really breaking out in the dollar or extending significantly at this point. This is not a longer-term development, so we have to look at opportunities to fade the dollar rally,” he added. <\/p>\n

A weak consumer confidence report and a decline in Federal Reserve manufacturing data further added to the dollar’s and yen’s safe-haven appeal.<\/p>\n

Data showed U.S. consumer confidence fell to a nine-month low in April, a survey showed on Tuesday. The Conference Board said its consumer confidence index fell to 101.3 – the lowest since July 2022 – from a revised 104.0 in March.<\/p>\n

The U.S. Richmond Fed manufacturing index slid as well, down at -10 in April, the fourth straight month of contraction. <\/p>\n

Both surveys negated strong U.S. housing data, which showed new home sales beat estimates with a 9.6% rise in March to a one-year high of 683,000 after net revisions.<\/p>\n

“The bias is for dollar weakness, but I think until U.S. data weakens substantially, it’s hard to see that trend really picking up,” said Vassili Serebriakov, FX strategist at UBS in New York.<\/p>\n

News on Monday of plunging deposits at First Republic Bank served as a reminder that stability risks have not entirely died down, while UBS reported a 52% slide in quarterly income. <\/p>\n

The yen firmed, behaving like a typical safe haven, even as the Bank of Japan’s (BOJ) new governor Kazuo Ueda signaled he was not in a hurry to shift policy. This week’s BOJ meeting, which concludes on Friday, is his first in charge.<\/p>\n

The Japanese currency rose 0.6% to 133.495 per dollar and was up 1.2% at 146.42 per euro, having earlier touched an eight-year low of 148.635. <\/p>\n

\n

(Graphic: Performance versus dollar – https:\/\/fingfx.thomsonreuters.com\/gfx\/mkt\/lbpggzbjlpq\/Pasted%20image%201682416690202.png)<\/p>\n

\n

The euro dropped 0.7% against the dollar to $1.0969, having risen 1.2% so far in April and more than 4% since mid-March.<\/p>\n

ECB board member Isabel Schnabel told Politico that a 50 basis point (bp) rate hike was not off the table and would depend on data – notably inflation figures due two days before May’s meeting.<\/p>\n

Elsewhere, sterling was down 0.6% at $1.2403, but was close to a 10-month high of $1.2545 reached earlier this month. <\/p>\n

The Australian dollar dropped 1.1% to US$0.6621 as traders waited for inflation data due on Wednesday, while the New Zealand dollar was at US$0.6138, down 0.5%.<\/p>\n

========================================================<\/p>\n

Currency bid prices at 4:10PM (2010 GMT)<\/p>\n

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid <\/p>\n

Previous Change <\/p>\n

Session <\/p>\n

Dollar index 101.8300 101.2500 +0.58% -1.604% +101.9500 +101.1900 <\/p>\n

Euro\/Dollar $1.0973 $1.1046 -0.65% +2.42% +$1.1068 +$1.0965 <\/p>\n

Dollar\/Yen 133.6150 134.2550 -0.49% +1.90% +134.4550 +133.3600 <\/p>\n

Euro\/Yen 146.61 148.26 -1.11% +4.50% +148.6100 +146.3000 <\/p>\n

Dollar\/Swiss 0.8919 0.8876 +0.50% -3.53% +0.8927 +0.8862 <\/p>\n

Sterling\/Dollar $1.2407 $1.2483 -0.60% +2.60% +$1.2507 +$1.2388 <\/p>\n

Dollar\/Canadian 1.3629 1.3541 +0.66% +0.60% +1.3647 +1.3525 <\/p>\n

Aussie\/Dollar $0.6624 $0.6696 -1.09% -2.84% +$0.6705 +$0.6614 <\/p>\n

Euro\/Swiss 0.9786 0.9805 -0.19% -1.10% +0.9815 +0.9777 <\/p>\n

Euro\/Sterling 0.8843 0.8844 -0.01% -0.01% +0.8876 +0.8841 <\/p>\n

NZ $0.6140 $0.6167 -0.45% -3.31% +$0.6187 +$0.6133 <\/p>\n

Dollar\/Dollar <\/p>\n

Dollar\/Norway 10.6850 10.5280 +1.43% +8.81% +10.7020 +10.5200 <\/p>\n

Euro\/Norway 11.7293 11.6267 +0.88% +11.77% +11.7366 +11.6066 <\/p>\n

Dollar\/Sweden 10.3121 10.2371 -0.04% -0.92% +10.3266 +10.2274 <\/p>\n

Euro\/Sweden 11.3110 11.3156 -0.04% +1.45% +11.3435 +11.2934 <\/p>\n

\n

(Reporting by Gertrude Chavez-Dreyfuss in New York; Additional reporting by Samuel Indyk in London and Tom Westbrook in Singapore; Editing by Sam Holmes, Mark Potter and Jonathan Oatis)<\/p>\n

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By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) – The safe-haven dollar and yen rose on Tuesday as market sentiment turned risk-averse amid renewed worries about the banking sector and the outlook for the global economy, which knocked the euro off a nearly 10-month high. The U.S. dollar index climbed 0.6% to 101.83, having dropped more than […]<\/p>\n","protected":false},"author":8,"featured_media":22121,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-22120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O01H-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=22120"}],"version-history":[{"count":6,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22120\/revisions"}],"predecessor-version":[{"id":23452,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22120\/revisions\/23452"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/22121"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=22120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=22120"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=22120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}