Dollar Up From Five-Month Low, Investors Await Key U.S. Economic Data



© Reuters.

By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia as it edged back from near a five-month low. Investors continued to bet the U.S. Federal Reserve will change its stimulus measures sooner than expected after positive economic data was released on Tuesday.

The that tracks the greenback against a basket of other currencies edged up 0.11% to 89.920 by 1:28 AM ET (5:28 AM GMT).

The pair was up 0.25% to 109.72.

The pair edged down 0.09% to 0.7747 after Australia released a better-than-expected Gross Domestic Product earlier in the day. The GDP rose 1.8% and 1.1% for the first quarter of 2021. The pair inched down 0.10% to 0.7248.

The pair inched up 0.06% to 6.3832. Investors continue to monitor the recent bullish yuan after the People’s Bank of China tightened banks’ forex reserve requirements to curb the yuan’s appreciation. The restrictions caused the to retreat from its three-year high of 6.3526 hit on Monday.

The pair inched up 0.01% to 0.4148, with due to speak later in the day.

“The direction of the dollar is definitely the focus,” Shinichiro Kadota, senior currency strategist at Barclays (LON:) in Tokyo, told Reuters, adding that “the market is split in its view.”

Some U.S. Federal Reserve officials insisted that the price pressure will be temporary, while some investors remained concerned that potential runaway inflation will eventually force the central bank to change its current dovish monetary policy earlier than expected.

“Even if inflation continues to overshoot, I think the Fed will continue to say it’s temporary, but the market won’t know for sure until fall, so we’re kind of stuck in this uncertainty,” said Kadota.

READ  Sensex plunges 407 pts; Yes Bank cracks 4 per cent

In the U.S., data released on Tuesday said the I rose 61.2 in May, driven by a boosted demand amid a reopening of businesses. It’s better than the 60.9 figure in forecasts prepared by investing.com and April’s 60.7 reading. However, the data also indicated supply shortages and labor constraints.

Investors now await further U.S. data, including , due on Friday for clues on the economic outlook. Its much-weaker-than-expected reading in April led the dollar to slump 0.7% on May 7.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here