US dollar ticks down as investors looking for clues
NEW YORK - The US dollar moved slightly lower on Monday, as investors are waiting for S&P PMI data on Wednesday and the Jackson Hole Economic Symposium on Aug. 24-26 in which Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde are expected to give clues for further guidance on their monetary policies, reported Xinhua.
The dollar index, which measures the greenback against six major peers, went down 0.07 per cent to 103.3100 in late trading.
In late New York trading, the euro increased to 1.0898 US dollars from 1.0878 dollars in the previous session, and the British pound was up to 1.2764 US dollars from 1.2740 dollars in the previous session.
The US dollar bought 146.0860 Japanese yen, higher than 145.2980 Japanese yen of the previous session. The US dollar fell to 0.8782 Swiss francs from 0.8824 Swiss francs, and it fell to 1.3543 Canadian dollars from 1.3545 Canadian dollars. The US dollar fell to 10.9443 Swedish krona from 10.9709 Swedish krona.
US inflation will likely moderate quicker than elsewhere, especially the eurozone, according to the UBS Editorial Team.
"We think the Fed is closer than the European Central Bank in ending its hike cycle, but fundamental long-term factors remain a burden for the US currency," including an expensive valuation, the twin fiscal and current account deficits, the rating outlook, and the high allocation of funds in the United States, said the UBS Editorial Team.
The German Buba Monthly Report showed that inflation could persist above the central bank's targets for longer. In that sense, upside inflation risks made investors place hawkish bets on the European Central Bank. - BERNAMA
