As investors rushed to the haven dollar on Tuesday due to concerns over China’s COVID flare-ups, the dollar stabilized after rising the previous day. Bitcoin, however, came under pressure due to worry about new contagion following the bankruptcy of cryptocurrency exchange FTX.
The dollar was at 141.86 yen, down 0.18% after a 1.2% gain; the euro was up 0.14% to $1.0258 after losing 0.8% on Monday; sterling was 0.19% to $1.1838 and somewhat reversed its 0.6% decline. According to Joseph Capurso, director of international and sustainable economics at the Commonwealth Bank of Australia, what’s happening in China will take center stage.
Beijing issued a warning on Monday, stating that COVID-19 was posing Beijing with its toughest test yet and that an increase in COVID cases had prompted further restriction measures.
The virus claimed lives in the nation’s capital for the first time since May. Tuesday saw more tightening of restrictions in Beijing and abroad, but currencies believed that the changes from the previous day were adequate. The dollar lost some impetus on Tuesday, according to MUFG analysts, who also cited more cautious words from Fed officials as a contributing cause.
In addition, San Francisco Fed President Mary Daly also stated that the real-world impact of interest rate rises is likely bigger than the central bank’s short-term rate objective suggests. Cleveland Fed President Loretta Mester and San Francisco Fed President Mary Daly made both statements.
Recent dollar movements have been mostly driven by market expectations of how quickly the Federal Reserve will hike interest rates. On expectations that the United States is reaching the end of its interest rate hike cycle, the dollar has been declining this month. However, more hawkish comments from policymakers broke this trend late last week, which helped Monday’s advances.
Quick Look: Bitcoin price currently consolidates around $57,000, down by 5%; Fed maintains high interest… Read More
Quick Look: Microsoft invested $1 billion in OpenAI in 2019 to catch up with Google… Read More
Ethereum in Ascending Channel: Risk at $3,000, Upside to $3,500 Quick Look: Bullish Channel: Ethereum… Read More
PayPal's Strong Start in 2024: $403.9B Payment Volume Surge Quick Look: Significant Volume Increase: PayPal… Read More
XTB announced its entry into the UK's £400 billion ISA market less than a quarter… Read More
In this BTN Centre review, we will embark on a trading journey, where cutting-edge technology… Read More