Dollar ends lower on return of risk sentiment
|The greenback ended the day lower against majority of its peers on Monday as rising U.S. yields together with a rally in U.S. stocks triggered the return of risk sentiment. (Dow closed at 31,880, up by 618 points or 1.98%)
Versus the Japanese yen, dollar dropped from 128.05 in New Zealand to session lows at 127.16 in Asian morning. The pair then rebounded strongly to 127.93 at European open on U.S.-China news before easing. Price found renewed buying at 127.37 in European morning and gained to 127.94 in New York morning in tandem with U.S. yields before stabilising.
Reuters reported U.S. President Joe Biden said he was weighing cutting tariffs on Chinese goods while increasing calls on OPEC to raise oil production as he grappled with a politically damaging wave of inflation. "I am considering it. We did not impose any of those tariffs. They were imposed by the last administration and they're under consideration," Biden said on reducing tariffs on China. He made the comments during a news conference with Japanese Prime Minister Fumio Kishida.
The single currency traded with a firm undertone in Asian trading and jumped in European morning to 1.0687 on cross-buying in euro especially vs sterling together with release of upbeat German Ifo data. The pair then found renewed buying at 1.0645 in New York morning and rose to an intra-day high at 1.0697 in New York before easing.
The British pound also traded with a firm bias in Asia and rose in tandem with euro to an intra-day high at 1.2600 in European morning. The pair then retreated to 1.2557 in New York morning on profit-taking together with cross-selling in sterling especially vs euro before stabilising.
Data to be released on Tuesday:
New Zealand retail sales, Australia S&P Global manufacturing PMI, S&P Global services PMI, U.K. Rightmove house price, PSNB, PSNCR, S&P Global manufacturing PMI, S&P Global services PMI, CBI distributive trade, France business climate, S&P Global manufacturing PMI, S&P Global services PMI, Germany S&P Global manufacturing PMI, S&P Global services PMI, EU S&P Global manufacturing PMI, S&P Global services PMI, U.S. building permits, redbook, S&P Global manufacturing PMI, S&P Global services PMI, new home sales and Richmond Fed manufacturing.
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