TOKYO (Reuters) – The dollar slipped to a three-year low against the British pound and rallied a loss against currencies on Wednesday as investors increased bets that a global economic recovery will boost asset growth. dangerous.
There was a focus on the New Zealand dollar ahead of a central bank meeting that could push the kiwi higher if policymakers give any positive comments about the local economy.
U.S. Federal Reserve Chairman Jerome Powell reiterated Tuesday that interest rates will remain low and the Fed will continue to buy bonds to support the U.S. economy, which many traders say is a long-term negative factor. time for the dollar.
At the same time, more money is flowing towards currencies that are expected to benefit from a buildup in global trade and into countries that are rapidly recovering from the coronavirus pandemic, which is also measures the dollar.
“Signs of economic recovery are raising commodity prices, which in turn supports commodity export currencies,” said Junichi Ishikawa, foreign exchange strategy at IG Securities.
“Risk appetite has improved a lot, and this is putting the dollar at a huge disadvantage. ”
The Australian dollar, which is likely to benefit from rising metal and energy prices, was trading near a three-year high.
The British pound rose to $ 1.4120, the highest level since April 2018.
The outlook for sterling has clarified how investors are building Britain’s rapid coronavirus vaccination program and their plans to prevent a lockout to reduce economic activity.
Against the euro, the dollar was trading at $ 1.2153, a near six-week low.
The dollar remained stable at 105.29 Japanese yen.
Powell pushed back against suggestions that a loose monetary policy will lead to runaway inflation and financial bubbles, which have emerged as two important issues this year, as there is growing skepticism about the rapid pace of gains in global stocks. .
For economies whose bankruptcy is caused by the coronavirus revolution, their central banks are now facing questions about when to start tightening policy, which leaves the dollar looks so attractive, some analysts say.
The Reserve Bank of New Zealand is expected to continue its policy on Tuesday, but three economists in a Reuters poll expect a rate hike by the end of next year due to a faster-than-expected economic recovery.
Ahead of the decision, the New Zealand dollar remained stable at $ 0.7338, near a three-year high.
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Cash bid prices at 0012 GMT
RIC Description Last US Close Pct Change YTD Pct High Bid Low Bid
Previous change
Session
Euro / Dollar $ 1.2153 $ 1.2150 + 0.02% -0.53% +1.2155 +1.2143
Dollar / Yen 105.2950 105.2600 + 0.05% + 1.96% +105.3250 +105.2400
Euro / Yen 127.96 127.86 + 0.08% + 0.82% +127.9800 +127.7800
Dollar / Switzerland 0.9054 0.9054 + 0.02% + 2.36% +0.9056 +0.9048
Sterling / Dollar 1.4118 1.4112 + 0.05% + 3.35% +1.4122 +1.4111
Dollar / Canada 1.2589 1.2590 + 0.03% -1.10% +1.2596 +1.2583
Aussie / Dollar 0.7908 0.7909 -0.03% + 2.79% +0.7915 +0.7903
NZ 0.7338 0.7343 -0.05% + 2.20% +0.7343 +0.7334
Dollars / Dollars
All spots
Spotan Tokyo
Europe spots
Vulnerability
Tokyo Forex market information from BOJ
Reciting with Stanley White; edited by Richard Pullin