US dollar falls as risk appetite rises after China; but set for 3rd weekly gain
Dollar index on track for best month since April 2022
US housing starts fall
Chinese yuan eyes further stimulus details
Bitcoin gains on 'Trump trade'
Recasts, adds new comment, byline, NEW YORK dateline, FX table, updates prices
By Gertrude Chavez-Dreyfuss and Amanda Cooper
NEW YORK/LONDON, Oct 18 (Reuters) -The U.S. dollar fell on Friday, taking a breather after five straight days of gains, as risk appetite increased following yet another round of stimulus measures from China that bolstered global equities led by Chinese stocks.
The greenback, however, was on track for its third weekly gain, currently up 0.6% this week. The dollar index, measuring the U.S. unit's value against six major currencies, has risen about 2.8% so far this month, its largest monthly gain since April 2022.
It was last down 0.3% at 103.52 =USD, its largest daily fall since late September.
The biggest support for the dollar over the last few weeks has been a shift in Federal Reserve policy expectations to a more moderate easing phase, after a slew of generally solid U.S. economic data. The Fed slashed benchmark rates by a supersized 50 basis points in September, prompting the rate futures market at that time to price in another jumbo move this year.
That Fed narrative, however, was not in focus on Friday.
Investors were cheered overall by the Chinese government's launch of two funding schemes to help boost its stock market. Chinese equities rallied as a result, lifting other stock markets as well, including the S&P 500 and the Nasdaq. That elevated the Chinese yuan against the greenback and boosted commodity currencies such as the Australian and Canadian dollars.
"Today's pullback in the dollar was more China-driven. Last night, China launched measures to support the stock market," said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto.
"That boosted Chinese stocks and risk sentiment more broadly and put pressure on dollar/yuan, which in turn helped lift euro/dollar. That kind of started the dollar pullback."
A slew of economic data from China, including third-quarter growth figures, however, metwith a muted response from markets.
In late morning trading, the dollar slid 0.4% against the yen JPY=EBS to 149.64 It has advanced about 0.8% on the week, however, having broken above this level on Thursday for the first time since early August. The U.S. currency also climbed 4.2% in October, its best monthly showing since April.
Adding to the dollar's shine in general was the rising prospect of former President Trump winning the November election, since his proposed tariff and tax policies are seen as likely to keep U.S. interest rates high.
The dollar fell further versus the Japanese currency after data showed U.S. housing starts dropped 0.5% to a 1.354 million pace in September, after rising by a hefty 7.8% to 1.361 million.
The euro, meanwhile, rose 0.2% against the dollar to $1.0861 EUR=EBS, rising for the first time in eight days, and on track for its largest daily gain since Sept. 26.
It benefited from the Chinese stimulus news after the European Central Bank cut euro zone interest rates by a quarter point on Thursday, in line with expectations. The ECB move wasa nod to the deterioration in economic growth across the region.
Europe's common currency was headed for its largest three-week decline against the dollar since 2022, down around 3%, as traders are now pricing in back-to-back rate cuts at the ECB's upcoming meetings.
Meanwhile, markets have been disappointed at the lack of further details offered by Chinese authorities on plans to revive the economy, and the yuan CNY=CFXS is headed for its largest weekly fall in more than 13 months against the dollar.
The offshore yuan CNH=D3 rose against the dollar, which fell 0.3% to 7.1177 yuan.The Australian dollar AUD=D3, often used as a liquid proxy for the yuan, was up 0.1% at US$0.6705.
The pound GBP=D3 was one of the stronger performers against the dollar, rising 0.2% to $1.3036after UK data showed retail sales grew more than expected in September, offering investors some reassurance about the strength of the British economy.
In cryptocurrencies, bitcoingot a lift from Trump's rising prospectsBTC= since his administration is seen as taking a softer line on cryptocurrency regulation. It was last up 2.2% at $68,419, and has beenup more than 10% since Oct. 10.
Currency bid prices at 18 October 03:06 p.m. GMT | |||||||
Description | RIC | Last | U.S. Close Previous Session | Pct Change | YTD Pct | High Bid | Low Bid |
Dollar index | =USD | 103.53 | 103.78 | -0.23% | 2.13% | 103.78 | 103.49 |
Euro/Dollar | EUR=EBS | 1.0858 | 1.0831 | 0.26% | -1.63% | $1.0864 | $1.0826 |
Dollar/Yen | JPY=D3 | 149.55 | 150.245 | -0.46% | 6.03% | 150.18 | 149.555 |
Euro/Yen | EURJPY= | 1.0858 | 162.67 | -0.17% | 4.34% | 162.84 | 162.21 |
Dollar/Swiss | CHF=EBS | 0.8652 | 0.866 | -0.1% | 2.79% | 0.8669 | 0.865 |
Sterling/Dollar | GBP=D3 | 1.3035 | 1.3011 | 0.2% | 2.45% | $1.307 | $1.3012 |
Dollar/Canadian | CAD=D3 | 1.3806 | 1.3795 | 0.08% | 4.15% | 1.381 | 1.3785 |
Aussie/Dollar | AUD=D3 | 0.6703 | 0.6696 | 0.12% | -1.68% | $0.6719 | $0.6695 |
Euro/Swiss | EURCHF= | 0.9393 | 0.938 | 0.14% | 1.15% | 0.9406 | 0.9378 |
Euro/Sterling | EURGBP= | 0.8329 | 0.8323 | 0.07% | -3.93% | 0.833 | 0.8296 |
NZ Dollar/Dollar | NZD=D3 | 0.6067 | 0.6061 | 0.15% | -3.95% | $0.6079 | 0.6055 |
Dollar/Norway | NOK= | 10.9288 | 10.912 | 0.15% | 7.83% | 10.9333 | 10.8594 |
Euro/Norway | EURNOK= | 11.8652 | 11.8234 | 0.35% | 5.71% | 11.8698 | 11.7714 |
Dollar/Sweden | SEK= | 10.5325 | 10.5372 | -0.04% | 4.62% | 10.5493 | 10.503 |
Euro/Sweden | EURSEK= | 11.4371 | 11.4144 | 0.2% | 2.8% | 11.4415 | 11.386 |
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by and Gertrude Chavez-Dreyfuss in New York and Amanda Cooper in London; Additional reporting by Tom Westbrook and Rae Wee in Singapore; Editing by Jamie Freed, Kim Coghill, Andrew Heavens and Sharon Singleton
Mga Kaugnay na Asset
Pinakabagong Balita
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.
