Economics
US dollar retreats due to “risk-on” rally
US dollar dips as Trump returns home The US dollar retreated overnight, as investors piled into pro-cyclical assets and out of defensive assets as the US president returned to the White House, supported by US ISM data and fiscal stimulus hopes. The US dollar index fell 0.38% to 93.40, with G-10 currencies carving out modest […]
US dollar dips as Trump returns home
The US dollar retreated overnight, as investors piled into pro-cyclical assets and out of defensive assets as the US president returned to the White House, supported by US ISM data and fiscal stimulus hopes. The US dollar index fell 0.38% to 93.40, with G-10 currencies carving out modest gains in overnight trading. That has left major currencies such as the euro, sterling, Australian and New Zealand dollars still ranging, but at the upper end of those ranges.
The US dollar weakness was more pronounced amongst pro-cyclical Asian currencies. The USD/CNH has fallen to 7.7300 and could well target support at 6.6700 if the positive sentiment continues in financial markets. The onshore yuan market is closed until Friday. The Singapore dollar, Thai baht and Philippine peso all recorded substantial gains, with only the Malaysian ringgit lagging. It is stuck mid-range as political and palm-oil woes continue to dog the country.
The passing of the new Indonesian labour law that loosens labour markets and foreign investment restrictions saw the Indonesian rupiah gap higher to 14,600 today. It has since given back some of those gains, with USD/IDR rising back to 14,700. Indonesian markets are awaiting the release of the exact wording of the legislation, and likely, a new bout of IDR strength will follow. Indonesia’s economic challenges remain a myriad of bad news and confusion; however, the passing of this admittedly unpopular law domestically should see the IDR continue to strengthen. A fall by USD/IDR through 14,600 opens further IDR gains in the days ahead.
Like equities, Asian currency traders are quiet today, wary of event risk from Washington DC. Both major and local currencies being almost unchanged in directionless trading this morning. That is likely to continue until Europe arrives later today.

Here’s What Retail Investors Are Most Interested In Buying
Here’s What Retail Investors Are Most Interested In Buying
U.S. retail investors, enticed by a brief pause in the interest rate cycle, came…
Ticking Time Bombs: 3 Homebuilder Stocks to Dump Before the Damage Is Done
The housing market is in a tricky spot right now. Higher interest rates are causing problems and distortions in the market. With the average interest rate…
Don’t Miss the Boom: 3 Fintech Stocks Set to Explode Higher
The fintech sector has significantly benefited from the advances in technology and the past few years have seen a solid growth of this sector. The pandemic…
-
Uncategorized8 hours ago
Closing Bell: Nothing inflated about ASX as steady August CPI baked into latest loss, benchmark now short -2.4pc this week
-
Energy & Critical Metals18 hours ago
Germany Edges Closer to 50% Renewable Energy Milestone Amid Solar Slowdown
-
Uncategorized11 hours ago
High Voltage: PMT’s Corvette lithium resource could be a 300Mt titan… if an ENTIRE LAKE can be drained first
-
Financing News21 hours ago
West High Yield (W.H.Y.) Resources Ltd. Announces Appointment of New Auditor
-
Economics22 hours ago
Don’t Miss the Boom: 7 Dividend Stocks Set to Explode Higher
-
Economics17 hours ago
USD/CHF: Franc suffers longest losing streak since 1975
-
Economics21 hours ago
Ticking Time Bombs: 3 Blockchain Stocks to Dump Before the Damage Is Done
-
Economics12 hours ago
First-Ever Filming Of Singapore’s Gold Reserves In Super-Secret Gold Vault