Dollar Sags in Asia

The dollar index, which tracks the dollar against a basket of currencies, edged up to trade at 95.720 at 2:58 p.m. HK/SIN after initially falling on the news. Meanwhile, the dollar was softer against the yen after hitting a four-month high in the previous session, with the greenback last fetching 113.49 yen.

Pressure on the dollar also saw the euro/dollar hit its highest level since May 2016. The common currency traded at $1.1456 at 3:03 p.m. HK/SIN compared to a high of $1.1489 seen earlier in the session.

“Russia-gate makes for good headlines, but the market [is] focused on the immediate monetary policy tasks at hand. While Yellen will count, the real driver for near-term dollar sentiment will be this week’s U.S. CPI,” OANDA senior trader Stephen Innes told CNBC, adding that political tail risk remained concerning.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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