Powell presses pause on dollar's rally; sterling surging

By Tom Westbrook

SINGAPORE, July 29 (Reuters) - The dollar slipped to multi-week lows in Asian trading on Thursday after fresh reassurance that U.S. interest rate hikes are distant and as riskier currencies drew support from China's efforts to soothe stock market jitters.

About a month of dollar gains had already lost momentum leading in to Wednesday's Federal Reserve meeting and Chairman Jerome Powell's remark that rate increases were "a ways away" was enough to tip it a touch lower still.

The euro EUR=EBS edged to a two-week high of $1.1860 and the Australian and New Zealand dollars clung to gains made in a bounce on Wednesday. Sterling GBP=D3 , which has been surging on optimism over the re-opening of the British economy, touched a one-month high of $1.3940.

The dollar index =USD was softer for a fourth straight session, last trading at a two-week low of 92.110, while the Chinese yuan CNY=CFXS edged up to stand as high as 6.4691 per dollar in onshore trade and has now regained ground lost in tandem with a regulatory-driven plunge in Chinese equities on Tuesday.

"In the short-term, there's been a reduction of taper fears, and that's why we've seen the dollar heading lower," said Jeffrey Halley, senior analyst at brokerage OANDA in Jakarta.

"Improving risk sentiment should be associated with a weaker dollar," added National Australia Bank's head of FX strategy Ray Attrill.

A Bloomberg report Link on a call China's securities regulator held with banks and brokers to soothe nerves following heavy equities selling also helped sentiment and riskier currencies.

A CNBC report Link saying China Securities Regulatory Commission told brokerages on the call that China would continue to allow companies to list in the United States offered further support, as did solid rises in Chinese stock indexes on Thursday.

The Australian dollar AUD=D3 was last up about 0.1% at $0.7379, capped by concerns over a lengthening lockdown in Sydney that is likely to drag on the national economy.

The New Zealand dollar NZD=D3 rose 0.2% to $0.6971.


Recent resilience in safe-haven currencies such as the Japanese yen and Swiss franc suggests plenty of caution remains in currency markets as global coronavirus cases rise, yet at the same time sterling's gains reflect optimism that the British economy can be re-opened as vaccinations progress.

The British currency is the biggest G10 gainer on the dollar this week. It climbed some 2.6% from a five-month low it touched last week to the one-month top it hit on Thursday.

The pound notched up its highest levels in almost four months on the euro on Wednesday EURGBP= . It has also made strong gains on the yen GBPJPY= and especially on the Australian dollar, against which it is up 3.6% from low touched in early July GBPAUD= .

Though experts and Prime Minister Boris Johnson have cautioned it is too early to draw conclusions, England's re-opening last week has yet to spark a surge in cases or in hospitalisations.

"At the moment, the UK's (COVID) position is pretty good and I do think that's had an impact," said NAB's Attrill.

Later on Thursday, traders will be looking at German labour and inflation data, European sentiment surveys and second-quarter U.S. GDP - where the consensus is for 8.5% annualised growth, albeit from a wide range of forecasts.

World FX rates Link

Reporting by Tom Westbrook; Editing by Edwina Gibbs

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Ang iyong kapital ay maaaring malugi. Ang mga produktong naka-leverage ay maaaring hindi para sa lahat. Tingnan ang aming Risk Disclosure.