US dol­lar makes gains on Septem­ber rate hike hopes

The China Post - - BUSINESS INDEX & -

The U.S. dol­lar rose against the euro and yen on Mon­day as up­beat U.S. data kept hopes for an in­ter­est rate rise as early as next month.

In Tokyo af­ter­noon trade, the green­back bought 124.38 yen, up from 124.32 yen in New York on Fri­day.

The euro slipped to US$1.1097 and 138.03 yen, from US$1.1112 and 138.14 yen in U.S. trad­ing last week.

Sen­ti­ment got a lift on Fri­day as solid U.S. in­dus­trial pro­duc­tion, whole­sale prices and July re­tail sales data all sig­naled the world’s top econ­omy was strength­en­ing.

The num­bers boosted ex­pec­ta­tions the U.S. Fed­eral Re­serve could be set to raise its key in­ter­est rate for the first time in al­most a decade as early as Septem­ber — a plus for the dol­lar.

Calm was re­turn­ing to cur­rency mar­kets af­ter main­land China spooked in­vestors last week by de­valu­ing the yuan and mov­ing to a new sys­tem for cal­cu­lat­ing its daily trad­ing ref­er­ence rate.

The sur­prise move, fol­lowed by two days of ma­jor cuts, fanned fears of a cur­rency war in which coun­tries push down the value of their units to lift ex­ports.

The dol­lar gained ground against other Asia-Pa­cific units.

The dol­lar rose to SG$1.4083 from SG$1.4025 on Fri­day, to 46.28 Philip­pine pe­sos from 46.25 pe­sos, to 35.35 Thai baht from 35.26 baht and to 1,182.00 South Korean won from 1,177.32 won.

The green­back also ad­vanced to 65.20 In­dian ru­pees from 65.14 ru­pees and to 13,855 In­done­sian ru­piah from 13,766 ru­piah.

The Aus­tralian dol­lar edged up to 73.75 U.S. cents from 73.72 cents on Fri­day, while the yuan fetched 19.44 yen against 19.43 yen.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.