Tue, 22 Jun 2021 Today's Paper

Euro presses higher against dollar, Asia markets cautious

9 September 2017 12:01 am - 0     - {{hitsCtrl.values.hits}}

A A A

AFP:  The euro extended its gains in Asian trade yesterday as traders bet on the European Central Bank winding in its huge stimulus programme, while equity markets ended a volatile week mostly in the red.


ECB boss Mario Draghi sent the euro surging past US$1.20 for the first time since the beginning of January 2015 by saying policymakers would decide next month on the bank’s plans for its bond-buying scheme.


While not openly saying that it would begin to cut back on the programme, his comments -- and his lack of concern about the strong euro -- were taken as a nod that the tapering would begin soon.

The remarks came as figures showed the eurozone economy continued to improve in the second quarter.


“Growth at these levels does not warrant the continuation of the ECB’s bond-buying programme. So it must end. The ECB knows it and the market knows it. That’s what is driving the euro higher and it’s what is complicating the decision for the ECB on the when and how,” said Greg McKenna, chief market strategist at AxiTrader.


The dollar was also coming under pressure from concerns about the impact of Hurricane Irma, which is about to strike Florida this weekend, while the chances of Donald Trump pushing through his market-friendly economic agenda are slimming.


“Investors have renewed their interest on the US political overhang as the political landscape continues to weigh heavily on the dollar. Specifically, the long and winding and no less bumpy road to tax reform looks more of a pipe dream now than ever,” said Stephen Innes, head of Asia-Pacific trading at OANDA.


The greenback fell below 108 yen to its lowest levels since November.


It was also down at 16-month lows of 6.5032 Chinese yuan, having skirted with 7.0 yuan earlier this month as the expectations of US rate hikes and vast capital outflows reversed and China’s economy showed signs of picking up.


“The appreciation of the RMB against the USD this year has been driven by a combination of USD weakness, China’s tighter management of capital outflows, reduced risk of large scale US-China trade war, and improved economic performance and market sentiment on China,” UBS China economist Wang Tao said in a note.


North Korea tensions, which fuelled a global sell-off after Pyongyang tested what it said was a hydrogen bomb Sunday, were eased a little by Trump’s remarks that a US military strike was “not inevitable”.


However, with world powers struggling to agree on a way to address the crisis markets remain on edge, with many observers fearing the North will conduct another missile test on Saturday.


On equity markets Tokyo ended 0.6 percent lower with exporters hit by the stronger yen while figures showed the Japanese economy continued to expand in the second quarter but at a slower pace that first thought.


Sydney was down 0.3 percent and Shanghai was marginally lower and Singapore shed 0.2 percent. Hong Kong edged up 0.5 percent in the afternoon while Wellington and Taipei were also up.


In early European trade London fell 0.2 percent, while Paris and Frankfurt each shed 0.3 percent.

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment


GSP+: Isn’t there a way out?

The European Parliament’s resolution on Sri Lanka on June 10 was the second

Is Litro Gas above the regulator?

After an in-house battle among members of the top management of the Consumer

Statistical blunders expose administrative weaknesses

Information helps save lives and during a pandemic a free-flow of vital, accu

Vavuniya tusker’s demise DID TOO MANY ‘COOKS’ SPOIL JUMBO’S RECOVERY?

On June 11 Sri Lanka lost another one of its magnificent tuskers that succumb



See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.