dollar | Dollar firms, Asia stocks slip as US data, Fed comments awaited

Dollar firms, Asia stocks slip as US data, Fed comments awaited

March 28, 2016 8:12 AM (UTC+8)

 

(From Reuters)

The dollar firmed on Monday and most Asian markets surrendered early gains as investors cautiously awaited U.S. economic data and speeches by Federal Reserve officials this week that could signal more interest rate increases than expected.

European markets are closed for the Easter Monday holiday.

U.S. stock futures ticked up 0.3 percent, although they remain flat for the quarter.

In the past week, the dollar has been helped by stronger-than-expected gross domestic product data and comments from some Fed officials indicating that policymakers think they could raise interest rates as early as next month.

The dollar index against a basket of six major currencies rose as high as 96.339, its highest in almost two weeks. It was last trading up 0.1 percent at 96.273.

“Fed officials generally looked to share views that they need to maintain a rate hike path given a U.S. recovery,” said Jeong My-young, Samsung Futures’ research head in Seoul. The dollar rose 0.4 percent to 113.51 yen, keeping intact its steady recovery from a 6-1/2-month low of 110.67 hit on March 17 after a Federal Reserve meeting that left markets convinced U.S. interest rates would not rise soon.

The yen weakness gave Japan’s Nikkei a 0.8 percent boost to its highest close in two weeks.

Japan was the region’s sole winner. With share markets in Australia, New Zealand and Hong Kong closed for holidays, the MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent.

Shares in Korea ended the day little changed, and Taiwan gave up earlier gains to close down 0.2 percent.

Chinese stocks also reversed course, with the Shanghai Composite index falling 0.3 percent and the CSI 300 losing 0.4 percent. Read more

Comments