Dollar rebounds as global market rally fades



*

Dollar rallies after sharp drop on Tuesday

*

Sterling falls after rising for six sessions

*

NZ move dims hopes of slowdown in rate rises globally

By Harry Robertson

LONDON, Oct 5 (Reuters) - The dollar rose on Wednesday, a day after suffering its biggest one-day drop in more than two years, as the excitement of the previous day's rally in stocks and risk-friendlier currencies wore off.

The dollar index =USD was last up 0.64% to 110.87, after tumbling 1.3% on Tuesday. The index, which measures the greenback against a basket of major currencies, has fallen just under 4% since touching a 20-year high of 114.78 last week.

The euro EUR=EBS fell 0.67% to $0.9921 after rising 1.7% on Tuesday.

Sterling was down 1.08% to $1.1352, after rising for six straight sessions. Its fall extended slightly as UK Prime Minister Liz Truss pledged to bring down debt as a share of national income, just over a week after the government's plans to slash taxes and ramp up borrowing spooked markets.

Recent gains for most major currencies against the dollar have been underpinned by hope among investors and traders that the U.S. Federal Reserve will raise interest rates by less than previously expected.

A bigger-than-anticipated fall in the number of job openings in August was the latest evidence that the U.S. economy is gradually slowing. The U.S. benchmark S&P 500 stock index .SPX jumped more than 3% on Tuesday.

"The data is suggesting a slightly better inflation backdrop," said Harry Adams, chief executive at foreign exchange company Argentex. "(Fed policymakers) are unlikely to be as aggressive as they have been over the last few months."

Adams said he expected "a period of at least a quarter of either a flat or slightly downward dollar."

However, the investor optimism which drove the dollar lower appeared to fade somewhat on Wednesday, with stocks and bonds paring their gains.

A fifth consecutive 50-basis-point rate hike from the Reserve Bank of New Zealand (RBNZ) on Wednesday reminded investors that inflation remains the main focus of central banks.

Global bond yields, which move inversely to prices, edged up after falling sharply in recent days while US stock futures slipped.

The yield on the key U.S. 10-year Treasury US10YT=RR was up 7 basis points to 3.685%, although it remained well below the 12-year high of more than 4% touched last week.

The New Zealand dollar NZD=D3 was last down 0.15% to $0.5724, having leapt as much as 1.3% earlier in the session. The Aussie dollar AUD=D3 was 0.6% lower at $0.6463.

Japan's yen JPY=EBS was 0.14% lower at 144.36 to the dollar.

U.S. Federal Reserve Governor Philip Jefferson reiterated overnight that inflation was the top target for policymakers and that growth would suffer in efforts to bring it down.

San Francisco Fed President Mary Daly took a softer line and said the impact of the rampant dollar - which has jumped 17% this year - on other currencies and economies was a concern.

Chris Turner, head of research at ING, said he believed investors were overly optimistic about the Fed slowing down on rate rises, given its stated focus on tackling inflation.

"We are still multi-month if not multi-quarter dollar bulls," he said in a note.

Turner said ING does not expect the dollar index to fall much below 110.

U.S. labour data due on Friday will be the next major indicator of the likely trajectory of the Fed's monetary policy.



World FX rates Link



Reporting by Harry Robertson in London. Additional reporting
by Tom Westbrook in Sydney; Editing by Bernadette Baum

Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.

Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.

Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.

Vi använder cookies för att ge dig den bästa upplevelsen på vår webbplats. Läs mer eller ändra dina cookie-inställningar.

Riskvarning: Ditt kapital riskeras. Hävstångsprodukter passar kanske inte alla. Se vår riskinformation.