Dollar Held Back by Lower U.S. Yields, Rebound in Pound
Thursday, 18 July 2019 08:02 WIB |
The dollar nursed light losses on Thursday, weighed down by lower U.S. yields and a rebound in the pound from 27-month lows.
The dollar index versus a basket of six major currencies was flat at 97.200 after shedding 0.2% the previous day.
The index had climbed to a one-week peak of 97.444 the previous day on stronger-than-expected U.S. retail sales and a slump in sterling. But it nudged lower as Treasury yields fell in the wake of weak U.S. housing market data and concerns about the unresolved U.S.-China trade conflict.
The International Monetary Fund (IMF) on Wednesday said the greenback was overvalued by 6% to 12%, based on near-term economic fundamentals.
The Fed is widely expected to lower interest rates by 25 basis points (bps) at its July 30-31 policy meeting, with some in the market wagering on a larger 50 bp cut.
Sterling was steady at $1.2434. It had stumbled to $1.2382, its lowest since April 2017 on Wednesday amid growing risks of Britain leaving the European Union in a no-deal Brexit, before selling abated.
The euro was flat at $1.1228 after crawling up 0.1% on Wednesday. The single currency's gains were modest as it was restrained by expectations of easing from the European Central Bank as early as next week.
The dollar was unchanged at 107.945 yen following an overnight loss of 0.3%.
Source : Reuters