Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar gains for 2nd day on Afghanistan, Delta variant worries

ForexAug 17, 2021 20:25
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: U.S. dollars and other world currencies lie in a charity receptacle at Pearson international airport in Toronto, Ontario, Canada June 13, 2018. REUTERS/Chris Helgren 2/2

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - The dollar advanced for a second straight session on Tuesday, bolstered by safe-haven demand, as investors fretted about Afghanistan, a slowing Chinese economy, and the rapid spread of the Delta coronavirus variant which forced some lockdowns.

The overall tone in financial markets was one of caution, with shares on Wall Street in the red.

A much sharper decline than expected in Tuesday's U.S. retail sales curbed gains in the dollar, but that was offset by the higher-than-forecast rise in industrial production, which accelerated the greenback's gains.

"This morning's retail sales report served to confirm that the U.S. consumer - the world's biggest and most dependable customer - is becoming more cautious," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.

"This, combined with evidence of a slowdown in the Chinese economy and ongoing political turmoil in Afghanistan, is driving investors to pay off dollar-funded borrowing positions and pull money out of high-risk markets," he added.

The Afghan Taliban said on Tuesday they wanted peaceful relations with other countries and would respect the rights of women within the framework of Islamic law, as they held their first official news briefing since their shock seizure of Kabul.

Many investors, however, were not comforted by the Taliban's conciliatory tone.

In afternoon trading, the U.S. dollar index rose 0.6% to 93.119. The euro, the biggest component in the dollar index, fell 0.6% to $1.1709.

The New Zealand dollar, meanwhile, tumbled to its lowest in three weeks after the country identified its first COVID-19 case since February, prompting the government to announce new short-term lockdown measures.

The currency fell sharply earlier in the global session after Prime Minister Jacinda Arden said Auckland - where the case was reported - would go into lockdown for seven days, while New Zealand as a whole will have the toughest level of lockdown for three days.

It was last down 1.7% at US$0.6904, after dropping to US$0.6900, the lowest since late July.

kiwi dollar https://fingfx.thomsonreuters.com/gfx/mkt/zgvommmdxvd/kiwi%20dollar.JPG

The Australian dollar fell to a nine-month low after central bank meeting minutes were seen as dovish. It was last down 1.2% at US$0.7253.

The safe-haven Japanese yen was down against a firm dollar, which rose 0.3% to 109.56 yen. The Swiss franc, another safe haven, also fell versus the dollar, which was last up 0.3% at 0.9149 franc.

Investors are looking to Wednesday's minutes of the Federal Open Market Committee meeting last month, as several Federal Reserve officials have adopted a more hawkish outlook in recent weeks.

That hawkish view, however, does not take into account the most current data releases, which have come in weaker than expected, such as the poor confidence numbers amid the surge in Delta variant cases and the renewed rise in mitigation measures that could slow growth.

========================================================

Currency bid prices at 3:12PM (1912 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 93.1180 92.6220 +0.54% 3.486% +93.1680 +92.6160

Euro/Dollar $1.1712 $1.1776 -0.54% -4.14% +$1.1785 +$1.1709

Dollar/Yen 109.5700 109.2600 +0.29% +6.05% +109.6500 +109.1200

Euro/Yen 128.34 128.64 -0.23% +1.12% +128.8700 +128.2700

Dollar/Swiss 0.9149 0.9124 +0.28% +3.42% +0.9150 +0.9100

Sterling/Dollar $1.3737 $1.3841 -0.74% +0.55% +$1.3845 +$1.3726

Dollar/Canadian 1.2622 1.2575 +0.38% -0.88% +1.2648 +1.2570

Aussie/Dollar $0.7254 $0.7337 -1.15% -5.73% +$0.7341 +$0.7243

Euro/Swiss 1.0715 1.0746 -0.29% -0.85% +1.0752 +1.0702

Euro/Sterling 0.8525 0.8503 +0.26% -4.61% +0.8536 +0.8505

NZ $0.6905 $0.7022 -1.67% -3.85% +$0.7029 +$0.6900

Dollar/Dollar

Dollar/Norway 8.9045 8.8325 +0.88% +3.77% +8.9190 +8.8280

Euro/Norway 10.4315 10.4030 +0.27% -0.34% +10.4533 +10.3832

Dollar/Sweden 8.7562 8.6530 +0.65% +6.83% +8.7700 +8.6497

Euro/Sweden 10.2563 10.1904 +0.65% +1.79% +10.2714 +10.1850

Dollar gains for 2nd day on Afghanistan, Delta variant worries
 

Related Articles

Bitcoin extends downtrend, falls 12.1% to $47,176
Bitcoin extends downtrend, falls 12.1% to $47,176 By Reuters - Dec 04, 2021 5

(Reuters) - Bitcoin dived 12.14% to $47,176.09 on Saturday, losing $6,567.6 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is down 31.6%...

Bitcoin tumbles 5.5% to $53,436
Bitcoin tumbles 5.5% to $53,436 By Reuters - Dec 03, 2021

(Reuters) - Bitcoin plunged 5.5% to $53,435.9 at 22:04 GMT on Friday, losing $3,112.06 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email