Economy

NZ Dollar Retreats As Asian Stock Markets Traded Lower

NZ Dollar Retreats As Asian Stock Markets Traded Lower”

The dollar index, which tracks the greenback against six major currencies, was modestly lower before turning higher on the Fed's forecast for one more rate hike in 2017.

Gold rose from the previous day's two-week low as the USA dollar slipped ahead of a Federal Reserve meeting that is expected to provide more clues on the pace of U.S. monetary tightening.

Japan's Nikkei 225 was flat at 20,298.80 and South Korea's Kospi edged down 0.1 percent to 2,413.63. The FTSE 100 index of leading British shares was stable at 7,272.

WALL STREET: The S&P 500 index rose 3.64 points, or 0.1 percent, to 2,503.87.

The US dollar gained ground during the Asian trading session after the Fed said it would begin in October to dial back its US$4.5 trillion stockpile of assets and also signalled it still expects one more interest rate hike by the end of the year.

The Fed's possible move to roll stimulus back further has not stemmed the greenback's weakness this year as other major central banks are considering steps either to slow their bond purchases or raise interest rates.

NZ Dollar Retreats As Asian Stock Markets Traded Lower

The Fed is expected to hold interest rates steady, with investors looking for clues on its anticipated pace of further tightening later this year and next.

The Fed raised rates by a quarter point in March and June and its current target range is now at 1.00-1.25 percent.

The Canadian dollar had surged to a two-year high of C$1.2063 on September 8 after the BOC hiked interest rates. That means the OECD is expecting eurozone growth this year to match the US rate, which it left unchanged.

The metal has fallen four per cent since hitting a more than one-year high of $US1,357.54 earlier this month, as the U.S. dollar recovered from lows and as fading concerns over North Korea's nuclear ambitions cut demand for bullion as a haven from risk. While the dollar lost some steam on Friday after data showed an unexpected drop in U.S. retail sales in August, it began the week on firm footing against the yen, following last week's solid performance.The dollar gained almost 2.8 percent against the yen last week, buoyed by a rise in U.S. Treasury yields that bolstered the greenback's appeal, and as data showing a pick up in U.S. consumer prices helped rekindle expectations that the Federal Reserve could raise interest rates again in December."We've certainly seen some adjustment on the December rate hike probabilities". Shanghai added 0.3 percent while Hong Kong's Hang Seng added 0.2 percent. Australia's S&P/ASX 200 edged up almost 0.1 percent to 5,724.70. MSCI's gauge of stocks across the globe shed 0.25 percent.

OIL: Benchmark U.S. crude added 35 cents to $50.25 per barrel on the New York Mercantile Exchange.

CURRENCIES: The dollar rose to 111.52 yen from 111.39 late Monday. If you would like to discuss another topic, look for a relevant article.



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