FOREX-Dollar steady, yen dips on month-end rebalancing - Investing.com India

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FOREX-Dollar steady, yen dips on month-end rebalancing - Investing.com India Posted: 29 Jan 2021 12:35 PM PST * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds quote, economic outlook, updates prices) By Karen Brettell NEW YORK, Jan 29 (Reuters) - The dollar was little changed on Friday while the Japanese yen sank to its lowest since mid-November as investors rebalanced portfolios for month-end. also jumped to a two-week high as a movement by retail investors to pile into certain stocks expanded to cryptocurrencies. The greenback has been largely range-bound against a basket of currencies for the past two weeks as investors evaluate whether a selloff that sent the currency down almost 7% last year is likely to continue. It was little changed against a basket of currencies on Friday at 90.57. The index is up 1.53% from a three-year low of 89.206 reached on Jan. 6. "People are waiting for fresh drivers and I don't think we get them 'til next month," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. "The question is whether the dollar's correction continues or it is over, and I think that the jury is still out." Employment data for January released next Friday is the next major economic driver, while investors are also focused on fiscal stimulus. The U.S. Senate and House of Representatives will move next week on President Joe Biden's plan to deliver COVID-19 relief to Americans and businesses reeling from the pandemic, top Democrats said on Thursday. yen underperformed on Friday even as risk appetite worsened, hitting a two-month low versus the dollar and a nearly three-year low against the Swiss franc. Analysts attributed the move to several factors, including the dollar's yield advantage over the Japanese currency and month-end portfolio reshuffling. Bank of Japan policymakers discussed the merits of allowing long-term yields to move more flexibly around the bank's target, a summary of opinions at their January meeting showed on Friday. of the move is also likely due to large short positions against the greenback being squeezed, said Chandler. "The market was a bit vulnerable to this," he said. The dollar was last up 0.50% at 104.73 yen JPY=D3 . It earlier rose to 104.94. "It's a very interesting move especially given that at the same time global equity indices would suggest that risk sentiment is not improving," said Valentin Marinov, head of G10 FX research at Credit Agricole (PA: ), referring to the yen's drop versus the dollar. The Japanese currency typically gains a safe-haven bid when risk sentiment sours. U.S. stock indexes slumped on Friday as investors gauged the efficacy data of Johnson & Johnson (NYSE: )'s COVID-19 vaccine, while a standoff between Wall Street hedge funds and small, retail investors contributed to volatility. .N Bitcoin was boosted after Tesla Inc chief Elon Musk tagged the cryptocurrency in his Twitter biography. Musk wrote simply "#bitcoin" in his biography on the social media site. was last up at 2.2% at $34,300, after earlier reaching$31,990. . "Bitcoin got lost in the GameStop (NYSE: ) mania and Musk's tweet brought cryptos back into the limelight," said Edward Moya, senior market analyst at OANDA. Assets that would benefit from decentralized finance are gaining traction as some retail traders express frustration that online trading brokers including Robinhood have curtailed their ability to trade stocks including GameStop GME.N and some cryptocurrencies. dollar also dipped to a three-week low against the Chinese yuan in offshore markets CNH=EBS as China's short-term money rates rose for a fifth straight day, busting above the central bank's interest rate corridor ceiling. the margin, tightening money market conditions in China, which are boosting local rates and helping lift the CNH out of its recent consolidation against the USD, may be adding to broader market anxieties and weighing on USD sentiment," analysts at Scotiabank wrote in a report on Friday. ======================================================== Currency bid prices at 3:00PM (2000 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 90.5700 90.5640 +0.01% +0.00% +90.7800 +90.3630 Euro/Dollar $1.2131 $1.2121 +0.09% -0.71% +$1.2156 +$1.2095 Dollar/Yen JPY=D3 104.7250 104.2100 +0.50% +1.39% +104.9350 +104.2750 Euro/Yen EURJPY= 127.04 126.35 +0.55% +0.09% +127.3300 +126.3300 Dollar/Swiss CHF=EBS 0.8906 0.8887 +0.22% +0.67% +0.8912 +0.8875 Sterling/Dollar GBP=D3 $1.3703 $1.3724 -0.15% +0.30% +$1.3750 +$1.3657 Dollar/Canadian CAD=D3 1.2801 1.2829 -0.22% +0.53% +1.2874 +1.2740 Aussie/Dollar AUD=D3 $0.7640 $0.7676 -0.45% -0.66% +$0.7704 +$0.7632 Euro/Swiss EURCHF= 1.0802 1.0769 +0.31% -0.05% +1.0810 +1.0761 Euro/Sterling EURGBP= 0.8850 0.8832 +0.20% -0.97% +0.8870 +0.8826 NZ NZD=D3 $0.7180 $0.7175 +0.07% -0.01% +$0.7225 +$0.7151 Dollar/Dollar Dollar/Norway NOK=D3 8.5690 8.5890 -0.16% -0.14% +8.6545 +8.4930 Euro/Norway EURNOK= 10.3993 10.4193 -0.19% -0.65% +10.4775 +10.3157 Dollar/Sweden 8.3627 8.3062 +0.47% +2.03% +8.3797 +8.3128 Euro/Sweden EURSEK= 10.1449 10.0973 +0.47% +0.68% +10.1535 +10.1050

Dollar Gains; Risk Sentiment Hit by Equity Turmoil By Investing.com - Investing.com Posted: 28 Jan 2021 11:55 PM PST © Reuters. By Peter Nurse Investing.com - The dollar pushed higher in early European trading Friday, with the safe haven in demand as risk sentiment takes a hit on the back of turmoil in equity markets.  At 3:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.3% at 90.690, adding on to Wednesday's 0.6% gain.  rose 0.3% at 104.50, fell 0.1% to 1.3708, fell 0.2% to $1.2102, while the risk-sensitive dropped 0.3% at 0.7656. U.S. stock futures moved sharply lower in early morning trading on Friday, with Wall Street's main equity indices on course for their worst week since the end of October. Hedge funds have been forced to to generate funds after their short positions in a number of stocks ran into a wave of buying from retail traders. This volatility in the equity markets has prompted safe-harbor demand for the U.S. currency. Also helping the greenback was the release of some positive U.S. economic data on Thursday, with the weekly falling more than expected. Fourth-quarter , meanwhile, slowed sharply but stayed positive, growing at annualized rate of 4.0%.  "The economy will likely continue struggling for the next month or two, but with vaccinations accelerating and households looking cash rich, a reopening of the economy could see growth reach multi-decade highs," said ING analyst Carsten Brzeski, in a research note. By contrast, the euro-zone economy is likely to shrink again in the first quarter given the stringent lockdowns while the vaccination campaign is hardly pulling up trees.  The French economy lurched back into in the final quarter of last year, shrinking 1.3% in the final three months of last year after surging 18.5% in the previous quarter, when it staged a strong rebound following a first lockdown. 's fell 4.3% as the start of winter tourism season fell flat. However, 's GDP defied expectations for a fall by growing 0.4%.  "Our bearish dollar view for 2021 has been built firstly on the Federal Reserve keeping policy very loose and secondly on the synchronised global recovery providing attractive alternatives outside of the US. Both premises are coming into question," added Brzeski.  Investors are also awaiting news of U.S. President Joe Biden's fiscal spending package, with the delay in its approval suggesting that the proposed $1.9 trillion deal will not end up being as large as expected, meaning less borrowing for the dollar to cope with. Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data. Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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