FOREX-Dollar dips as stocks advance; hits 2-decade high vs yen – Yahoo Finance

(Adds details, updates prices; changes byline, dateline; previous LONDON)
By Chuck Mikolajczak
NEW YORK, June 7 (Reuters) – The U.S. dollar index retreated from earlier highs and fell on Tuesday as U.S. equities shook off an early risk-off mood and turned positive, but the greenback managed to hit its highest level in 20 years against the Japanese yen.
Stocks on Wall Street advanced in the early portion of trading, reversing course after each of the major indexes on Wall Street opened with sharp losses and the Nasdaq lost more than 1%, dampening the appetite for the safe haven dollar.
The dollar index fell 0.117% at 102.340, with the euro up 0.07% to $1.0702.
The yen weakened to touch 132.99 per dollar, its lowest since April 3, 2002. The greenback has been strengthening against the yen as the policy paths of their countries' respective central banks diverge.
"The reason why the dollar is doing so well is the Fed kicking and screaming and saying they are going to raise rates 50 basis points and 50 basis points and 50 basis points and all that," said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta, Georgia.
"Then particularly with the yen, Japan is saying no, inflation not going to be a problem, we are not getting it, so we are not raising rates, so we are not backing off our quantitative easing."
Bank of Japan Governor Haruhiko Kuroda on Tuesday repeated his view that a weak yen benefited the economy if its moves were not too sharp, a comment that followed the currency's fall to a fresh two-decade low.
The Japanese yen weakened 0.44% versus the greenback at 132.45 per dollar, while Sterling was last trading at $1.2575, up 0.36% on the day.
After touching a near 20-year high of 105.01 on May 13, the dollar index has eased back to around the 102 level, although Friday's strong payrolls report helped the dollar notch its first weekly gain in three.
The pound gained against the dollar, rebounding after falling to a three-week low against the greenback on the heels of British Prime Minister Boris Johnson escaping a confidence vote that left him politically wounded.
The Australian dollar rose 0.35% versus the greenback to $0.722 after the Reserve Bank of Australia lifted its cash rate by 50 basis points to 0.85%, the most in 22 years, and flagged more tightening to come as it battles to restrain surging inflation.
Investors will hear from the European Central Bank on Thursday at its next policy announcement, with the U.S. Federal Reserve set to announce policy next week.
In cryptocurrencies, Bitcoin last fell 5.06% to $29,850.00.
(Reporting by Chuck Mikolajczak Editing by Bernadette Baum)
Related Quotes
Schiff publicly predicted the great financial crash of 2008. Will he be right again?
The Dow Jones fell as inflation fears rose. A Warren Buffett stock rose after Berkshire Hathaway raised its stake. Nike and Apple stock fell.
Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally suffered sharp losses Tuesday, with the Nasdaq and S&P 500 breaking below a key level. Economic reports revived recession and inflation fears.
Suze is bearish — but not on everything.
Lisa Shalett, Morgan Stanley Wealth Management’s chief investment officer, says the odds of a recession are now over 50%.
Apple’s efforts to replace Qualcomm as a supplier of 5G modem chips for its iPhone reportedly have hit a snag.
Not a lot of positives surround Shopify at the moment. Unfortunately for many investors, that disappointment is not limited to just Shopify, but also includes most growth stocks at the moment. Many growth stocks are down 60% to 70% or more.
Shares of the online car-buying company Carvana (NYSE: CVNA) were plunging this morning, likely after a Barron's article published over the weekend said that the company, in some cases, sold cars before it even had the title to them. Barron's said in its reporting that Carvana was selling cars too quickly during the pandemic, when demand for buying a car online soared, which led to problems in receiving the proper title for vehicles for some customers. Apparently, enough people have experienced this problem that a lawsuit is being brought against the car seller, saying that some customers went years without legally being able to drive vehicles purchased from Carvana.
Hotshot investor Cathie Wood, chief executive of Ark Investment Management, has said repeatedly in recent weeks that we're headed for disinflation soon. Consumer prices soared 8.6% in the 12 months through May, a 40-year high. "We were wrong on one thing and that was inflation being as sustained as it has been," Wood told CNBC.
We’re facing a maelstrom of conflicting currents in the markets today, with a series of headwinds running head-on into each other. Consumer sentiment is low – in fact, at the lowest levels ever recorded, with 79% of consumers expecting economic conditions to get worse in the coming year. Inflation is high, at levels not seen since 1981, and is expected to remain elevated through the end of 2023. Fuel prices are major driver with the national average for a gallon of gasoline exceeding $5. The hou
(Bloomberg) — A public dispute between a longtime crypto investor and a digital-asset exchange is the latest in a series of mini-crises that have rocked crypto markets in recent weeks. Most Read from BloombergRussia Slips Into Historic Default as Sanctions Muddy Next StepsBig Tech Sinks Stocks Bruised by Recession Jitters: Markets WrapChina Cuts Travel Quarantine in Biggest Covid Zero Shift YetMichael Burry of ‘The Big Short’ Fame Warns Fed May Alter CourseA $2 Trillion Free-Fall Rattles Crypto
The Dow Jones fell. The Donald Trump SPAC took a dive amid legal woes. Apple stock treaded water after an analyst call.
Investors are pouring millions of dollars into Cathie Wood’s flagship Ark Invest fund despite its free-fall from pandemic highs.
David Bianco, chief investment officer Americas at DWS Group, has a price target for the S&P 500 of 3,700 to f 4,100 for the second half of the year.
Investors might be skeptical to put their money in the stock market now given the current market scenario. Excellent growth stocks are trading at a bargain now. Investors new to dividend stocks can consider these three that belong to an exclusive group of Dividend Kings.
In this article, we will look at 10 best stocks under $50 according to billionaire Ray Dalio. If you want to skip reading about Ray Dalio’s investment philosophy and his hedge fund’s returns, you can go directly to 5 Best Stocks Under $50 According to Billionaire Ray Dalio. Ray Dalio is an American billionaire investor […]
Recent events, particularly the reversal of the long-standing Roe v. Wade decision that guaranteed women’s right to have an abortion, have put women’s health matters squarely in the spotlight. It also opens up an opportunity for biomed firms involved in the fields of reproductive health and contraception. So today we’ll look at two stocks closely tied to the contraceptive business – to the research and marketing of new methods. But that's not all, according to TipRanks database, these are stocks
Northwestern Mutual Wealth Management Company CIO Brent Schutte joins Yahoo Finance Live to track the performances of tech and energy stocks alongside market movements, volatility amid inflation and the Fed's interest rate hike, and comparisons to past economic environments.
Taiwan-based hardware analyst Ming-Chi Kuo says Qualcomm will hold on to 100% of the Apple modem supply for the 2023 iPhones. Qualcomm shares soared Tuesday on a report that Apple’s push to develop modem chips for the iPhone “may have failed,” and that Qualcomm will remain the exclusive supplier of 5G chips for phones to be launched in the 2023 second half. Writing on Twitter, the Taiwan-based hardware analyst Ming-Chi Kuo said that Qualcomm (ticker: QCOM) will hold on to 100% of the Apple (AAPL) modem supply for the 2023 iPhones vs the company’s own previous estimate of 20%.
(Bloomberg) — Andrew Formica, the chief executive officer of Jupiter Fund Management Plc, suddenly announced he’s leaving the £55.3 billion ($67.9 billion) asset manager he joined in 2019.Most Read from BloombergRussia Slips Into Historic Default as Sanctions Muddy Next StepsMichael Burry of ‘The Big Short’ Fame Warns Fed May Alter CourseAnti-Abortion Centers Find Pregnant Teens Online, Then Save Their DataChina Cuts Travel Quarantine in Biggest Covid Zero Shift YetA $2 Trillion Free-Fall Rattl

source

Leave a Reply

Your email address will not be published.