Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Dollar Down, Investors Await Further Clues on Fed Asset Tapering Timetable

Published 13/08/2021, 04:38
Updated 13/08/2021, 04:38
© Reuters.

By Gina Lee

Investing.com – The dollar was down on Friday morning in Asia, but remained near a four-month high. Investors now await more hints from the U.S. Federal Reserve on a timetable for asset tapering and interest rate hikes.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.08% to 92.968 by 11:27 PM ET (3:27 AM GMT).

The USD/JPY pair inched up 0.02% to 110.41.

The AUD/USD pair inched up 0.10% to 0.7341 and the NZD/USD pair inched up 0.09% to 0.7006.

The USD/CNY pair was steady at 6.4783.

The GBP/USD pair inched up 0.04% to 1.3810. The pound hit a two-week low of $1.3794 during the previous session, even as the GDP for the second quarter rose a slightly better-than-expected 22.2% year-on-year. The GDP grew 4.8% quarter-on-quarter.

The latest U.S. economic data, released on Thursday, said the producer price index grew 1% month-on-month in July. Although the consumer price index released a day before suggested that inflationary pressures are peaking, the fact that they remain could push the Fed to begin asset tapering.

Several Fed officials called for asset tapering to begin in the coming months, in contrast to the more dovish policies of other central banks such as the Bank of Japan and the European Central Bank.

Despite Fed Chairman Jerome Powell’s most recent dovish comments putting him at odds with some of the regional Fed presidents, expectations of an asset tapering announcement by the end of 2020 are growing.

"The focus is shifting to the employment from inflation. While we still need to monitor the impact of the COVID-19 Delta variant, if we have a strong payroll growth for the next few months, then there should be a tapering announcement from the Fed," Sumitomo Mitsui (NYSE:SMFG) Trust Asset Management senior economist Naoya Oshikubo told Reuters.

The U.S. data also said that 375,000 initial jobless claims were filed throughout the week, which was lower than the 387,000 claims filed during the previous week.

Latest comments

hello im newbie
tapering? but one minute you're saying Delta Corona is choking the life out of the recovery
Tapering by the end of 2021, maybe?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.