The dollar slipped on Tuesday after six straight days of gains, as U.S. Treasury yields dipped and investors looked for fresh incentives to buy the currency following a nearly 7 percent rally since mid-February. The dollar’s recent uptrend has been supported by generally upbeat U.S. economic data that has kept the Federal Reserve on track to raise interest rates at least two more times this year. In contrast, other major central banks such as the Bank of Japan are not in a tightening mode. “The U.S. dollar may require a ...

The dollar is poised to drop about 5 percent by year-end as the market’s focus returns to the worsening U.S. twin deficits and the surge in Treasury yields stalls, according to Brandywine Global Investment Management. The greenback has become vulnerable to a selloff as its recent rally has stretched valuations, said Richard Lawrence, who helps oversee $76 billion as senior vice president for portfolio management at the Legg Mason Inc. unit in Philadelphia. President Donald Trump’s administration is unlikely to stop the currency from weakening, he said. “The dollar could ...

The dollar advanced to a five-month high against a basket of currencies on Monday, as news of a truce between the United States and China on trade tariffs prompted investors to pare back short positions on the greenback. Investors have been short the dollar since July of last year, but the dollar index has rallied nearly 7 percent since mid-February. The dollar has been mainly bolstered by generally solid U.S. economic data that has backed the Federal Reserve’s monetary policy tightening stance this year. The prospect of a resolution to ...

The pound is running into another crucial week as it fumbles around this year’s lowest levels against the dollar for a footing. With the next round of Brexit talks, key U.K. economic reports and the still-unfolding Italian coalition drama set to converge in the coming days, front-end option volatility in sterling versus the U.S. currency has picked up from a one-month low reached at the start of last week. Adding to the pound’s woes were weekend newspaper reports that the Conservative Party was preparing for another election this year amid ...

The U.S. dollar has been on a nearly unstoppable uptrend since the start of the second quarter, rising in tandem with government bond yields, while equities got the short end of the stick. Now, investors wonder whether a buoyant buck will derail earnings growth. Since the beginning of April, the ICE U.S. Dollar Index DXY, +0.21% a popular gauge of the U.S. currency that measures it against six rivals, is up 3.9%. Meanwhile, the S&P 500 SPX, -0.26% was off 0.3% and the Nasdaq Composite Index COMP, -0.38% was down ...

With Turkey’s central bank sitting on the sidelines observing a currency meltdown and double-digit inflation, one brokerage is looking for help from a higher power. “God help Turkey,” Istanbul-based broker Alnus Yatirim said in the sign-off to its morning note to clients on Monday. “We’re faced with a central bank that is watching the market when it needs to lead and direct it.” The comments come as Turkey competes with Argentina, Angola and Venezuela for the world’s worst currency this year. The Turkish lira has declined more than 16 percent ...

https://www.bloombergquint.com/politics/2018/05/18/euro-to-weather-the-perfect-storm-engulfing-it-say-analysts#gs.zAkB2_0 Euro bulls are keeping the faith. The shared currency is headed for its worst run of weekly losses in more than three years, weighed down partly by speculation that Italy’s populist parties may seek a 250-billion euro debt writeoff. While the euro may be in for some more turbulence in the near term, analysts see its bullish trajectory being largely intact on optimism the euro-area economy will pick up momentum, leaving the European Central Bank on course to tighten monetary policy. “It feels like a perfect storm has engulfed ...

Jim Schaeffer says a resurgent dollar that’s crushed returns for local debt from developing nations is due for a turnaround. The deputy chief investment officer at Aegon Asset Management is sticking with his unhedged overweight position in local-currency bonds even as losses pile up. Aegon oversees $103 billion of fixed-income assets, including $4 billion dedicated to emerging markets. “The strength in the dollar probably surprised us a little bit,” Schaeffer, who is based in Chicago, said in an interview. “When the dollar is doing well against major currencies the weight ...

The dollar rose to a five-month high against a basket of major currencies on Friday, helped by weakness in the euro as investors fretted about political uncertainty in Italy. The dollar index has climbed for five straight sessions, posting a 1.2 percent weekly gain. It has risen 5 percent since mid-February, with investors betting U.S. interest rates will need to rise further to curb inflation. Shaun Osborne, chief FX strategist at Scotiabank in Toronto, however, said the dollar’s rally was more about extreme short positioning that needed to unwind.”We continue ...

The euro’s five-quarter rally is being impeded by a five-letter word: Italy. As the wind was knocked out of Italian bonds Wednesday on concern that the two populist political parties struggling to form an administration would seek a government debt writedown, the common currency slid to the weakest level this year. That may only be the beginning, according to Standard Bank. Political uncertainty is now augmenting slowing economic momentum to support euro bears, said Steve Barrow, head of foreign-exchange strategy at the bank in London. The currency could fall as ...

The euro was headed on Friday for its fifth successive weekly decline versus the dollar, in what would be a first for the currency since 2015, as political uncertainty in Italy continued to worry investors. The euro has slumped six cents from more than $1.24 in the space of three weeks after a huge dollar rally and amid concerns about the demands of populist parties likely to form Italy’s next government. On Thursday, the far-right League and 5-Star Movement agreed the basis for a governing accord that would slash taxes ...

The dollar climbed to a four-month peak against the yen on Thursday, bolstered by the rise in U.S. Treasury yields that suggests a more upbeat outlook for the world’s largest economy. U.S. benchmark 10-year yields hit a high of 3.122 percent on Thursday, the highest in nearly seven years. Since the beginning of the year, U.S. 10-year yields have increased by more than 50 basis points, on track for their largest rise in eight years. “The upside pressure on the dollar has been dramatic as the dollar has not declined ...

The euro hovered near five-month lows on Thursday as investors fretted about the demands of Italian populist parties and as a fresh rise in U.S. government bond yields underpinned demand for the dollar. The euro labored close to the $1.18 <EUR=> mark at $1.1795 and down 0.1 percent on the day, slightly above the $1.1763 2018 low it hit on Wednesday. The euro has slumped from more than $1.24 in April after a blistering dollar rally in which investors have bet that U.S. interest rates will need to rise further ...

The dollar added to recent gains against a basket of currencies on Wednesday to touch a five-month high, supported by relatively robust U.S. economic data in recent days, while the euro was hit by reports that a likely future Italian government would seek debt forgiveness from European creditors. The dollar index, which measures the greenback against a basket of six other currencies, was up 0.19 percent at 93.393, after rising as high as 93.632, its highest since Dec. 19. The greenback has risen about 1.7 percent this month, boosted by ...

The U.S. dollar rose against a basket of major currencies on Tuesday to its highest since December, as data showing a pickup in U.S. consumer spending exerted fresh selling pressure on U.S. government bonds and sent the yield on the 10-year Treasury note to its highest level since July 2011. The dollar index, which measures the greenback against a basket of six other currencies, was up 0.63 percent at 93.173, after rising as high as 93.457. Against the yen, the dollar was up 0.58 percent at 110.29 yen, its strongest ...