Dollar sags after benign US inflation data; kiwi skids on rate cut
Updates prices as of 0315 GMT
By Kevin Buckland
TOKYO, Aug 14 (Reuters) -The dollar remained on the back foot on Wednesday after tumbling versus major peers overnight as a benign reading for U.S. producer prices reinforced bets on Federal Reserve interest rate cuts this year.
New Zealand's dollar dropped sharply from a four-week high after the Reserve Bank of New Zealand reduced the key cash rate and flagged more cuts to come, surprising some market participants.
The yen strengthened against the dollar, buoyed by lower U.S. bond yields, with crucial U.S. consumer price index figures looming later on Wednesday.
Japanese Prime Minister Fumio Kishida's decision to not run for reelection in his party's leadership race next month had little effect on markets, analysts said.
Meanwhile,risk-sensitive currencies like sterling and the Australian dollar remainedfirm after the unexpected softening in U.S. inflation buoyed equities. The Aussie briefly reacheda more than three-week peak, while sterling traded near a more than two-week high following its best one-day performance against the dollar since late April.
The dollar index =USD - which measures the currency against six major rivals, including sterling, the euro and the yen - was steady at 102.61 as of 0315 GMT, after slumping 0.49% overnight.
Traders were already certain that the Federal Open Market Committee (FOMC) would lower rates at its September meeting before the producer price data, but ramped up bets for a super-sized 50 basis point cut to 53.5% from 50% a day earlier, according to CME's FedWatch Tool.
Commonwealth Bank of Australia analysts expect the dollar to be in a holding pattern before the release of U.S. CPI data, but then see risks tilted toward further weakness.
"We expect the market to double down on large interest rate cuts by the FOMC this year if the core CPI increases by 0.1%/mpnthor less, (whereas) we expect the market to largely play down the core CPI if it increases by 0.2%/monthor 0.3%/month," Carol Kong, a currency strategist at CBA, wrote in a client note.
KIWI DROPS AFTER RATE CUT
The kiwi NZD=D3 fell as much as 1.08% after the RBNZ cut the cash rate by a quarter point, when only about half of economists and a little more than two-thirds of traders had bet on such a move. That reversed earlier gains that took it to the highest since July 18 at $0.6084. It was last trading 1.02% weaker at $0.6015.
It was the central bank's first easing since early 2020, and came a year earlier than its own projections.
"The RBNZ has completed a 180-degree dovish backflip, cutting interest rates to bring much-needed relief for households and businesses just three months after it raised the possibility of additional rate hikes," said Tony Sycamore, a market analyst at IG.
The Aussie AUD=D3 edged down 0.23% to $0.66185 in sympathy with the kiwi, afterearlier rising to $0.66395 for the first time since July 23.
Sterling GBP=D3 was steady at $1.2862 following a 0.76% rally on Tuesday when it got an additional boost from data showing a surprise drop in the UK's jobless rate.
The euro EUR=EBS was flat at $1.0991 after rising to $1.099975 on Tuesday for the first time since Aug. 5.
The dollar dropped 0.31% to 146.40 yen JPY=EBS, with U.S. 10-year Treasury yields US10YT=RR edging down to 3.85% in Asian hours, after declining 5.5 basis points overnight.
In Japan, Kishida announced he would step down in September, ending a three-year term marred by political scandals and paving the way for a new premier to helm Japan's ongoing economic recovery.
"Probably the impact on the economy and financial markets should be relatively limited because Mr. Kishida’s policies, if I try to characterize them, are really wide ranging and not focused on specific themes," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management.
"The big question would be who would be next. That will be more important."
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Kevin Buckland; Editing by Himani Sarkar and Kim Coghill
免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。