The US dollar traded mixed against other major currencies as investors were digesting the recent remarks by Federal Reserve Janet Yellen and newly-released economic data from the country. The Dow Jones industrial average fell 53.01 points, or 0.3 per cent, to 18,395.40.
Advertisement
Data from German states suggested inflation was little changed in August from July and around 0.5 per cent compared with a year ago, adding to the debate on whether the European Central Bank will continue to cut rates. The Nasdaq Composite Index was down 12.12 points, or 0.23 per cent, to 5,220.21. But on Friday, at the Fed’s yearly assembly for worldwide central bankers in Jackson Hole, Wyoming, Fed Chair Janet Yellen gave one of the clearest indicators that a rate rise was probably round the corner.
Gold edged lower on Monday as the dollar got a boost after hawkish comments from Federal Reserve Chair Janet Yellen left the door open for a USA interest rate hike as early as next month.
Analysts said it’s possible for the Fed to hike interest rates as soon as September.
London, Europe’s biggest stock market, was closed for a public holiday.
U.S. Treasury yields rose to their highest since June and rate futures indicated the market priced in more than a 30 percent chance of a hike in September.
The greenback gained 1.1 percent against the yen to 103.01 JPY= , after earlier hitting 103.13, the highest level since July 29.
The dollar index, which measures the U.S. currency’s strength against major currencies, was trading at 95.527, down 0.04% from its previous close of 95.566.
The S&P 500 and the Dow snapped a three-day losing streak on Monday, helped by a lift in financials and commodity stocks after strong consumer spending data pointed to a pickup in USA economic growth.
Oil prices fell for a second straight day in response to the dollar’s strength and worries about crude oversupply.
Brent crude was last down 89 cents, or 1.81 percent, at $48.37 a barrel.
Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognized Tehran’s right to regain market share lost during worldwide sanctions that were only lifted in January. The dollar edged down 0.1 percent to 101.78 yen, moving away from Monday’s high of 102.39, while the euro also inched 0.1 percent lower to 113.87 yen. The metal had recovered from a near five-week low of $1,314.70 after a dollar run lost some steam late Monday.
Advertisement
The U.S. unit jumped 0.9 percent against the South Korean won and 0.7 percent against Malaysia’s ringgit, while it also rose on the Taiwan and Singapore dollars, Philippine peso, and Indonesian rupiah.
