(Updates to U.S. afternoon)
By Saqib Iqbal Ahmed
NEW YORK, May 17 (Reuters) – The dollar fell for a third straight day on Tuesday, pulling back from a two-decade high against a basket of major peers, as an uptick in investors' appetite for riskier bets diminished the U.S. currency's appeal.
Upbeat earnings views from Home Depot and United Airlines along with optimism around the easing of China's crackdown on tech and COVID-19, helped to lift risk sentiment.
The U.S. Dollar Currency Index, which tracks the greenback against six major currencies, was down 0.7% at 103.41, its lowest since May 6. The index hit a two-decade high last week supported by a hawkish Federal Reserve and worries over the global economic fallout from the Russia-Ukraine conflict.
"The mood in markets has improved dramatically relative to last week with most asset classes bouncing and retracing the moves seen last week," Brad Bechtel, global head of FX at Jefferies, said in a note to clients.
"The result is a rally in equities and sell-off in fixed income with nearly every currency in the world rallying against the USD," Bechtel said.
The dollar remained subdued after data showed U.S. retail sales increased solidly in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants, showing no signs of demand letting up despite high inflation.
The dollar index pared losses after Federal Reserve chair Jerome Powell said at a Wall Street Journal event on Tuesday, the Fed will "keep pushing" to tighten U.S. monetary policy until it is clear inflation is declining.
The euro was up 1% at $1.0535, extending its rebound from a five-year low touched last week, and putting more distance between the common currency and parity with the U.S. dollar.
The currency, which benefited from ECB policymaker Francois Villeroy de Galhau saying on Monday that a weak euro could threaten price stability in the currency bloc, rose after hawkish comments from Dutch central bank chief Klaas Knot.
Knot said that not only was the European Central Bank set to hike rates by 25 basis points in July, it was also ready to consider a bigger rise if inflation proved higher than expected.
"We think the euro sell-off is starting to look stretched," said Shaun Osborne, chief currency strategist at Scotia Bank.
Sterling also took advantage of the softer dollar to jump 1.26% to its highest level since May 5 after strong labour market data reinforced expectations that the Bank of England would continue to raise rates to fight inflation.
The Australian dollar, viewed as a liquid proxy for risk appetite, rose 0.52%.
Australia's central bank considered a sharper rise in interest rates at its May meeting, minutes published on Tuesday showed, in a heavy hint it will hike again in June.
The Chinese offshore yuan gained 0.8% after a steep slide that has knocked it about 7% lower since mid-April.
Shanghai logged three consecutive days with no new COVID-19 cases outside quarantine zones on Tuesday, a milestone that in other cities has signalled the beginning of lifting restrictions.
Meanwhile, bitcoin, the world's largest cryptocurrency, was about flat on the day at $29,745.69, as it struggled to stay above $30,000 after bouncing from the multi-month lows hit last week.
(Reporting by Saqib Iqbal Ahmed; editing by Barbara Lewis and Nick Zieminski)
In this article, we discuss the 10 stocks that Jim Cramer recommends selling. If you want to read about some more stocks that Jim Cramer recommends selling, go directly to Jim Cramer Recommends Selling These 5 Stocks. A lot of growth investors are reeling from the aftershocks of the incredible crash in crypto markets over […]
It’s official: after this past Monday’s trading, the S&P 500 has joined the NASDAQ in a bear market. The index has fallen more than 21% year-to-date, not as deep a loss as the NASDAQ’s 31% but still enough to give investors indigestion. It also brings up a vital question: how to maintain the portfolio in a difficult stock environment? Enter Jim Cramer. The well-known host of CNBC’s ‘Mad Money’ program has never been at a loss for advice to give, and he’s come through once again. His word for sto
These four stocks offer a rare combination of sub-$100 prices, market leadership, and the potential of long-term success.
Yahoo Finance's Brian Cheung explains what a bear market is, how investors can spot the bottom, and what it signifies for investors on this week's Yahoo U.
In this article, we discuss the 12 best energy stocks for 2022. You can skip our comprehensive analysis of the energy industry and go directly to 5 Best Energy Stocks for 2022. According to the World Energy Outlook report 2021 by International Energy Agency, demand for oil and gas will continue to rise till 2030. The […]
Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk posted in a thread on Twitter (NYSE: TWTR) in March, after inflation hit a 40-year high for the first time this year, advising followers to own “physical things” when inflation is high. In the tweet, Musk said “As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high. I still own & won’t sell my Bit
These innovative growth stocks are well off their highs and ripe for the picking by opportunistic investors.
These passive income powerhouses, with yields ranging from 2.1% to 8.4%, are ideal buys in a plunging market.
FedEx Corp. stock soared 13% Tuesday to put it on track for the biggest one-day gain in about 29 years, after the company raised its quarterly dividend by 53% as part of a new agreement with activist investor D.E. Shaw.
Edward Thorp is an investing and mathematical legend — from spotting Bernie Madoff’s fraud as well as identifying Warren Buffett’s investing acumen early, to coming up with blackjack game theory. It was a sobering if measured reply — the inductee to the Blackjack Hall of Fame said he was reading about what’s going on with American society. “You could have the choices I just described — a devolution, evolution or revolution,” Thorp said.
Bitcoin prices are moving to their lowest levels since 2020. Economist Adam Schiff, one of the biggest critics of bitcoin and cryptocurrencies, predicts that the most popular digital currency will drop at least as low as $20,000. Bitcoin alone represents a bit more than 45% of the crypto market, according to data firm CoinGecko.
The week has started off rough for cryptocurrencies, with bitcoin tumbling and troubles for some cryptocurrency platforms as U.S. inflation rattles investors.
Continental Resources Inc. shares jump 15% Tuesday after shale pioneer and billionaire Harold Hamm offered to take private the shale company he founded for about $4 billion.
Yahoo Finance's Jared Blikre breaks down how markets opened on Tuesday.
In any stock market, there are great opportunities, and one guru at identifying opportunities is Warren Buffett. Taking a page from his investing model, American Express (NYSE: AXP) and StoneCo (NASDAQ: STNE) look like two great stocks to buy right now. American Express was hit with declines, like every other credit card company, in the early stages of the pandemic.
The crypto crash comes amid broad selloffs of risk assets. Meanwhile, Celsius paused all withdrawals from customers, which worries investors.
Caterpillar Inc. will move its headquarters to near Dallas-Forth Worth, in another blow to the Chicago area, which last month lost the Boeing headquarters.
(Bloomberg) — FedEx Corp. boosted its dividend and announced board changes in coordination with activist investor D.E. Shaw & Co., shaking up the courier just two weeks into the tenure of new Chief Executive Officer Raj Subramaniam.Most Read from BloombergChina Alarms US With Private Warnings to Avoid Taiwan StraitStocks’ Pandemic Bull Run Ends With Recession Fear: Markets WrapVolatility Grips Stocks as Traders Brace for Fed: Markets WrapCrypto Market Sinks Below $1 Trillion After Latest DeFi B
Things will probably get worse before they get better. But in the past, the S&P 500 rose 17% on average in the year after a bear market.
Spirit has granted JetBlue access to the due diligence information being shared with Frontier Group Holdings Inc after failing to secure enough shareholder support for its deal with the rival suitor. saying it was the "best available" at this time.
(Updates to U.S. afternoon)