The dollar rises, but gains are limited as the Fed maintains a dovish stance By


© Reuters.

By Gina Lee – The dollar rose on Friday morning in Asia, even as low employment figures in the United States and a stubbornly dovish US Federal Reserve led investors to undo some bets on the dollar. led to their worst week of the year. The one that tracks the dollar against a basket of other currencies was up 0.08% to 92,140 at 11:30 PM ET (3:30 AM GMT). The index is parked near a two-week low after falling 1% last week. The pair was up 0.05% to 109.30. The pair was down 0.16% to 0.7640 and the pair was down 0.04% to 0.7050. The pair rose 0.03% to 6.5526, with China posting better-than-expected March consumer and buyer price index data earlier in the day. The CPI contracted 0.5% while growing 0.4% and 4.4% year-on-year. The pair was up 0.02% at 1.3735. However, investors remained cautious on the dollar. “In short, energy has come out of the dollar rebound in the first quarter, just as it has come out of the bond sell-off,” Societe Generale (OTC 🙂 head of foreign exchange strategy Kit Juckes told Reuters. Meanwhile, the euro and yen are poised for their biggest weekly percentage gains in five months, with the euro rising 1.4% and the yen 1.3% against the dollar this week. In the US, Thursday’s figures said they unexpectedly rose to 744,000, more than the 680,000 claims in the forecasts produced by and the 728,000 claims filed in the previous week. The Fed continued to maintain its dovish stance on monetary policy, with Chairman Jerome Powell saying at an International Monetary Fund event Thursday that the stance would only change after a few consecutive months of positive data. Powell’s colleague and St. Louis Fed chairman added at a separate Illinois Southern University meeting that the central bank shouldn’t even discuss the changes until there are clear signs that the COVID-19 pandemic is over. . Disappointing labor data and comments from the Fed sent Treasuries higher, pushing benchmark 10-year yields to a two-week low of 1.6170% and further undermining the dollar’s appeal. The dollar’s loss was the gain of risk currencies, with the AUD and NZD also supported by the broadly bullish mood in stocks. “Markets (are) rethinking the view of US dollar exceptionalism … stronger US growth should benefit all global cyclical assets, including the NZD and Asian currencies, and this seems to be the issue now at stake. “ANZ Bank analysts said in a note.

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