SPY447.19+1.32 0.30%
DIA352.50-0.35 -0.10%
IXIC15,021.81+124.47 0.84%

FOREX-Dollar climbs as Evergrande uncertainty swirls

reuters.com · 09/24/2021 10:26
FOREX-Dollar climbs as Evergrande uncertainty swirls

Adds details, updates prices; changes byline, dateline; previous LONDON

By Chuck Mikolajczak

- The dollar was on track for its biggest daily percentage gain against a basket of major currencies in a week on Friday, as uncertainty over beleaguered Chinese property developer Evergrande helped the greenback bounce back from a sharp decline in the prior session.

China Evergrande Group EGRNY owes $305 billion and has run short on cash, missing a Thursday deadline for paying $83.5 million and leaving investors questioning whether it will make the payment before a 30-day grace period expires. A collapse of the company could create systemic risks to China's financial system. nL4N2QQ1CL nL1N2QQ02J

The safe-haven dollar had its biggest one-day percentage drop in about a month on Thursday after Beijing injected new cash into the financial system and Evergrande announced it would make interest payments on an onshore bond.

The decline came a day after the greenback was lifted by Wednesday's announcement from the U.S. Federal Reserve that it will likely begin to trim its monthly bond purchases as soon as November and flagged interest rate increases may follow suit sooner than expected as the central bank moves away from its pandemic crisis policies. nL1N2QN1LU

"We are in one of the situations, and this doesn’t always happen, where the dollar is the beneficiary of multiple ideas," said Joseph Trevisani, senior analyst at FXStreet.com.

"The U.S. economy does look better than most of it competitors, there is lingering fear out there over Evergrande and what else is out there in the rather untransparent Chinese economy and political system, plus the Fed appears finally ready."

The dollar index =USD rose 0.291%, with the euro EUR= down 0.25% to $1.1707.

Kansas City Fed President Esther George said the U.S. labor market has already met the central bank's test to pare its monthly bond purchases, and the discussion should now turn to how its massive bondholding could complicate the decision on when to hike rates. nL1N2QQ1AX

In prepared remarks in a listening session with a wide swath of economic players, Fed Chair Jerome Powell did not elaborate on his own economic or monetary policy outlook, which he had outlined at the close of the two-day Fed meeting on Wednesday. nS0N2Q401T

Sterling weakened a day after hawkish comments from the Bank of England on Thursday pushed the pound to its biggest one-day percentage gain since August 23. nL8N2QP2YG

The Japanese yen weakened 0.38% versus the greenback at 110.73 per dollar, while Sterling GBP= was last trading at $1.3675, down 0.30% on the day.

Cryptocurrencies slumped after China's most powerful regulators increased the country's crackdown on the digital assets, with a blanket ban on all crypto transactions and crypto mining. nB9N2Q200C

Bitcoin BTC=BTSP, the world's largest cryptocurrency, last fell 6.12% to $42,154.72.

Smaller coins, which generally move in tandem with bitcoin, also dropped. Ether ETH=BTSP last fell 8.43% to $2,888.00 while XRP XRP=BTSP last fell 7.2639757% to $0.93. nL1N2QQ0MG

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Currency bid prices at 10:19AM (1419 GMT)

Description

RIC

Last

U.S. Close
Previous
Session

Pct Change

YTD Pct
Change

High Bid

Low Bid

Dollar index

=USD

93.3690

93.1040

+0.29%

3.765%

+93.4210

+93.0430

Euro/Dollar

EUR=EBS

$1.1707

$1.1738

-0.26%

-4.18%

+$1.1747

+$1.1701

Dollar/Yen

JPY=EBS

110.7300

110.3300

+0.36%

+7.17%

+110.7300

+110.2000

Euro/Yen

EURJPY=

129.64

129.49

+0.12%

+2.14%

+129.7600

+129.3900

Dollar/Swiss

CHF=EBS

0.9255

0.9247

+0.12%

+4.65%

+0.9260

+0.9225

Sterling/Dollar

GBP=D3

$1.3675

$1.3723

-0.34%

+0.10%

+$1.3736

+$1.3660

Dollar/Canadian

CAD=D3

1.2696

1.2658

+0.31%

-0.29%

+1.2730

+1.2644

Aussie/Dollar

AUD=D3

$0.7246

$0.7297

-0.69%

-5.80%

+$0.7316

+$0.7237

Euro/Swiss

EURCHF=

1.0835

1.0850

-0.14%

+0.26%

+1.0864

+1.0822

Euro/Sterling

EURGBP=

0.8558

0.8553

+0.06%

-4.24%

+0.8572

+0.8550

NZ Dollar/Dollar

NZD=D3

$0.7007

$0.7070

-0.86%

-2.40%

+$0.7080

+$0.7006

Dollar/Norway

NOK=D3

8.6150

8.5835

+0.25%

+0.21%

+8.6280

+8.5790

Euro/Norway

EURNOK=

10.0868

10.0694

+0.17%

-3.63%

+10.1029

+10.0610

Dollar/Sweden

SEK=

8.6598

8.6171

+0.12%

+5.65%

+8.6654

+8.6218

Euro/Sweden

EURSEK=

10.1395

10.1277

+0.12%

+0.63%

+10.1447

+10.1218





(Reporting by Chuck Mikolajczak; Editing by Dan Grebler)

((charles.mikolajczak@tr.com; @ChuckMik;))