Dollar finds support as investors put safety first



By Tom Westbrook

SINGAPORE, June 27 (Reuters) - The dollar and Japanese yen both found support in a choppy Asia session on Monday, benefiting from a bid for safety as investors worried rising interest rates and softening economic data could signal a global recession is on the horizon.

While stocks followed Wall Street higher, currency traders were wary of extending Friday's dollar selling too much because the dollar typically rises in times of uncertainty.

The risk-sensitive Australian dollar AUD=D3 was shaky along with commodity prices through the Asia session, and was last down 0.1% at $0.6935.

The euro EUR=EBS was pinned at $1.0564. The beaten-down yen JPY=EBS steadied at 134.81 per dollar. The U.S. dollar index =USD was steady at 104.000, after reaching a 20-year peak of 105.79 earlier in the month.

Weakening U.S. economic data knocked it off that perch last week, and a survey released on Friday showed consumer confidence at a record low, giving another prompt for investors to cut back bets on U.S. interest rate hikes.

But the spectre of a global slowdown, and a preference for dollar-denominated assets in such times, has prevented further falls.

"The dollar tends to rise when people worry about a global recession," said Commonwealth Bank of Australia strategist Joe Capurso in Sydney.

Futures pricing 0#FF: shows traders now anticipating the U.S. Federal Reserve's benchmark funds rate stabilising around 3.5% from March next year, a pullback from pricing in rates zooming to around 4% in 2023. Treasuries rallied last week.

The New Zealand dollar NZD=D3 hovered at $0.6321, while sterling GBP=D3 was stuck at $1.2285.

Chinese factory activity data due to be released later this week could provide a guide as to whether the world's second-largest economy is finding momentum again after the disruption caused by strict COVID-19 lockdown measures.

China's yuan CNY=CFXS caught a boost after Shanghai's top party boss declared victory over COVID-19 and it was last up slightly at 6.6856 per dollar.

Elsewhere, Russia's rouble RUB= fell in the interbank market as Russia headed for its first sovereign default since the Bolshevik revolution a century ago.

The rouble was last quoted at 53.60 per dollar, which is actually stronger than where it sat before Russia's invasion of Ukraine, though sanctions make it sparsely traded.

========================================================

Currency bid prices at 0556 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.0562

$1.0558

+0.04%

-7.09%

+1.0575

+1.0550 Dollar/Yen

JPY=EBS

134.8550

133.4300

+1.10%

+17.28%

+135.2050 +134.5600 Euro/Yen

<EURJPY=EB 142.45

142.69

-0.17%

+9.31%

+142.9700 +142.0600

S>

Dollar/Swiss

CHF=EBS

0.9576

0.9586

-0.10%

+4.98%

+0.9581

+0.9566 Sterling/Dollar GBP=D3

1.2283

1.2273

+0.10%

-9.16%

+1.2296

+1.2269 Dollar/Canadian CAD=D3

1.2881

1.2888

-0.04%

+1.89%

+1.2916

+1.2870 Aussie/Dollar

AUD=D3

0.6932

0.6941

-0.13%

-4.64%

+0.6958

+0.6906 NZ

NZD=D3

0.6320

0.6314

+0.10%

-7.66%

+0.6326

+0.6296 Dollar/Dollar

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX



World FX rates Link



Reporting by Tom Westbrook; Editing by Simon Cameron-Moore and
Christian Schmollinger

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.