Dollar rises ahead of expected Fed rate hike
The dollar broadly rose Monday ahead of a key US central bank policy meeting, while China’s yuan hit fresh multi-year lows as policymakers signalled a move away from its peg against the greenback.
Markets are focused on the Federal Reserve, which is expected to give the go-ahead to a small increase in borrowing costs for the first time in nearly a decade — a plus for the dollar.
The Fed’s two-day meeting, which starts Tuesday, comes as plunging oil prices and worries about the global economy have recently sent investors flocking to safe-haven units including the yen and euro.
“While the US dollar has been trending higher over the past year in anticipation of the first likely rate hike in a decade, the tone of the (Fed) statement will determine how the US dollar might fare” going forward, Bank of New Zealand currency strategist Jason Wong said in a commentary.
“Fed tightening will be occurring at a time when other major central banks are on hold or still easing, which should continue to provide support to the US dollar,” he added.
Higher interest rates attract investors seeking better returns to dollar-denominated assets.
On Monday, the greenback rose to 121.10 yen from 120.86 yen Friday in New York, but it was still well down from 123 yen at the start of last week.
Also Monday, a closely watched Bank of Japan survey on business confidence showed major manufacturers were cautious last quarter.
However, the slightly better-than-expected result dampened hopes that the Bank of Japan would expand its huge stimulus programme this year, further supporting the yen.
The euro weakened to $1.0958 and 132.70 yen from $1.0996 and 132.89 yen in US trade.
China’s yuan, or renminbi, slumped as Beijing struggles with an outflow of capital and a growth slowdown in the world’s number two economy.
The dollar bought 6.4588 yuan. It hit a four-year low of 6.4358 in US trade on Friday after Beijing signalled it would begin measuring the yuan against a multi-currency basket instead of just the dollar.
The move — aimed at better reflecting market realities — spurred speculation the Chinese unit would weaken further.
“The market took the announcement as the People’s Bank of China allowing for more weakness in the renminbi,” Andy Ji, a Singapore-based strategist at Commonwealth Bank of Australia, told Bloomberg News.
China shocked world markets over the summer with a series of currency devaluations that set off a plunge in its domestic stock market, and reignited worries about the health of the world’s number two economy.
In other trading Monday, the dollar rose against some emerging market currencies, while weak oil prices hit Malaysia’s ringgit.
The ringgit fell 0.52 percent, while the South Korean won dropped 0.45 percent and Taiwan’s dollar fell 0.22 percent.
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1 Comments
Sterling Homes ltd selling Plots and Acres of Land
Hebron garden estate is owned by Sterling homes Ltd and it’s
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mass: more than 10acres. Land type: dry, sandy and leveled. Location: Lekki,
about 6minutes drive to Eleko beach and 15minutes drive to Lekki free trade
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Havilah park and garden is an estate located about 6mins
drive off the Lagos-Ibadan expressway. It’s about 25mins drive to Berger
bus-stop. The estate is fenced with a gate house, and our ultra- modern
borehole is already in place. The price of a plot is #630,000 outright, and we
still have other installment plan also. For more information and site
inspection call Yemi Amodu at Sterling Homes LTD: Plot 2, River Valley Estate,
Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495….
Moriah park is situated at Agbowa, Ikorodu. The estate is
facing the Lagos state housing scheme popularly called Fashola estate. It’s
fenced round with a gate house and an industrial borehole has been constructed
at the site as well. It’s selling for a promotional offer of #630,000 outright,
though we still have other installment payment option. For more information and
site inspection, call Yemi at Sterling Homes LTD: Plot 2, River Valley Estate,
Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495
Gibeon park is located at Gberigbe
area of Ikorodu Lagos. The estate is situated off Ijede road Gberibe close to Lagos
state model college Igbokuta, The estate is fenced and gated in a serene
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PRICE: #600,000 outright. Flex
plan = #150,000 initial deposit then spread #100,000 for 6months at #750,000
total Easy
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Half Plot (324sqm): #350,000 outright payment
TITLE: Registered Survey and Approved Layout plan. Contact Adeyemi
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08136119495
We will review and take appropriate action.