by admin | May 25, 2021 | World
By Barry Eitel,
San Francisco: The dollar sank to a three-year low Wednesday after Treasury Secretary Steven Mnuchin said a weaker U.S. currency would boost U.S. trade.
Mnuchin made the comment during a press conference at the World Economic Forum in Davos, Switzerland.
“Obviously, a weaker dollar is good for us as it relates to trade and opportunities,” Mnuchin said.
He said the White House was not focused at all on the short-term value of the dollar.
“Longer term, the strength of the dollar is a reflection of the strength of the U.S. economy and the fact that it is and will continue to be the primary currency in terms of the reserve currency,” he added.
As the dollar dropped, currencies like the British pound, Japanese yen and the euro rose.
According to the ICE U.S. Dollar Index which weighs the U.S. dollar against other global currencies, the dollar fell below the 90 mark for the first time since the end of 2014.
The dollar raced upward between 2014 and the November 2016 election of President Donald Trump. The latest downturn means that over half of that two-year gain has been wiped out.
Trump has upset global markets during his first year in office, including dropping the U.S. out of the Trans-Pacific Partnership trade deal between 12 Asian, North American and South American countries. He has also strongly criticized the North American Free Trade Agreement (NAFTA), a landmark trade deal between the U.S., Canada and Mexico.
Earlier in the week, he imposed stiff tariffs on foreign-made solar panels and washing machines.
Trump’s Commerce Secretary Wilbur Ross spoke alongside Mnuchin and discounted any suggestion that the White House was attempting to launch an international trade war.
“We don’t think that adhering to the rules is protectionist,” Ross said. “We think, in fact, it is essential to having markets operate properly, to have people play by the rules.”
—AA
by admin | May 25, 2021 | World
New York : The US dollar fell against most other major currencies after former National Security Adviser Michael Flynn pleaded guilty to lying to the Federal Bureau of Investigation (FBI) regarding his contacts with Russia.
“My guilty plea and agreement to cooperate with the special counsel’s office reflect a decision I made in the best interests of my family and of our country. I will accept full responsibility for my actions,” Flynn told a court in Washington.
In late New York trading on Friday, the euro fell to $1.1892 from $1.1903 in the previous session, and the British pound dipped to $1.3467 from $1.3526 in the previous session, Xinhua news agency reported.
The Australian dollar rose to $0.7611 from $0.7565.
The US dollar bought 112.05 Japanese yen, lower than 112.46 yen of the previous session. The US dollar dropped to 0.9762 Swiss franc from 0.9837 Swiss franc, and it moved down to 1.2695 Canadian dollars from 1.2903 Canadian dollars.
Special Counsel Robert Mueller’s office issued a statement earlier on Friday specifying Flynn’s charges, saying he lied to the FBI about two contacts he’s had with Russian officials prior to assuming office.
Ty Cobb, a White House attorney, issued a statement following the revelation saying the White House has also been a victim to Flynn’s lies and downplaying implications of Flynn’s plea.
The dollar index, which measures the greenback against six major peers, decreased 0.20 per cent at 92.864 in late trading.
—IANS
by admin | May 25, 2021 | World
New York : The US dollar declined against other major currencies, amid comments from European Central Bank’s (ECB) official and speculation that the tax overhaul plan Trump raised would stall.
In late New York trading on Tuesday, the euro increased to $1.1807 from $1.1749 in the previous session, and the British pound increased to $1.3204 from $1.3153 in the previous session, Xinhua news agency reported.
The Australian dollar increased to $0.7783 from $0.7760.
The dollar bought 112.31 Japanese yen, lower than 112.66 yen of the previous session. The US dollar lost to 0.9751 Swiss franc from 0.9799 Swiss franc, and it was down to 1.2510 Canadian dollars from 1.2539 Canadian dollars
The euro rose to session highs against the dollar on Tuesday, as Sabine Lautenschlaeger, vice-chair of the supervisory board of ECB, called for the central bank to roll back asset purchases in 2018.
Meanwhile, there has been speculation that the tax overhaul plan President Donald Trump raised would stall, weighing down the greenback.
The dollar index, which measures the greenback against six major peers, was down 0.45 per cent at 93.253 in late trading.
Trump and the top Republicans in Congress hope to enact a package of tax cuts for corporations, small businesses and individuals before January, saying lower taxes will boost economic growth, jobs and wages.
However, media reported a spat between Trump and an influential Republican senator raised worries.
—IANS
by admin | May 25, 2021 | World
New York:(IANS) The US dollar lost against euro Thursday as economic data of the country came in worse-than-expected.
On the US economic front, in the week ending September 26, the advance figure for seasonally-adjusted initial jobless claims increased by 10,000 from the previous week’s unrevised level to 277,000, above market consensus of 272,000, said the US Labour Department.
The four-week moving average remained at a very low level of 270,750, a decrease of 1,000 from the previous week’s unrevised average, suggesting continued strength in the labour market, Xinhua news agency reported.
Meanwhile, the US September manufacturing purchasing managers’ index (PMI) registered 50.2 percent, a decrease of 0.9 percentage points from the August reading of 51.1 percent, said the Institute Supply Management (ISM) on Thursday.
In late New York trading, the euro gained to 1.1185 dollars from 1.1175 dollars of the previous session, and the British pound increased to 1.5132 dollars from 1.5127 dollars. The Australian dollar went up to 0.7031 dollars from 0.7015 dollars.
The dollar bought 119.92 Japanese yen, higher than 119.91 yen of the previous session. The dollar moved up to 0.9777 Swiss francs from 0.9741 Swiss francs, and it moved down to 1.3253 Canadian dollars from 1.3338 Canadian dollars.
by admin | May 25, 2021 | World
Photo Credit: FinancialExpress
Mumbai:(IANS) Negative cues eminating out of China coupled with bearish equity markets resulted in the rupee falling to its lowest levels against the US dollar in over two years during the intra-day trade on Monday.
The Indian currency was trading at 66.83 to a dollar at 4.00 p.m., down 37 paise from its previous close of 66.46 on Friday (September 4, 2015). The rupee had touched an intra-day high of 66.85.
The rupee had last breached the 66.80-level to a greenback on September 4, 2013.
The Indian currency came in for a beating as frantic dollar-buying in China devalued the off-shore yuan and other Asian currencies, including the rupee.
The volatility started after reports from China suggested that the central bank there was planning to impose stringent regulations on foreign exchange purchases from October to curb speculation and volatility.
Interestingly, the Chinese yuan was two percent weaker in off-shore markets than domestically.
“The rupee is being impacted from the pressure put on yuan (devaluation) and the expected shortfall of dollars in China due to the reports on new regulations,” Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities explained to IANS.
“The macro data on foreign reserves from China suggest there has been a huge outflow of funds despite direct investments and exports.”
The rupee’s downward spiral also impacted the barometer index of the Indian equity markets the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) which plunged by over 308 points or 1.22 percent at close of trading on Monday.
Investor confidence was eroded on the back of fears of an interest rate hike in the US, weak monsoon and bearish Asian markets.
