Dollar Index

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Dollar dips ahead of Fed


The dollar slipped ahead of the U.S. Federal Reserve's two-day policy meeting that begins later on Tuesday, while the yen gained despite expectations that the Bank of Japan will ease later this week.


The U.S. central bank is widely expected to stand pat on policy, but investors were bracing for any possible signals from the Fed about a tightening later this year.


Fed fund futures on Monday indicated that the market sees nearly no chance of a rate hike this week, but the chances of a December hike rose to 56 percent, up from 48 percent on Friday.


The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1 percent to 97.228 (DXY), below the previous session's high of 97.569, its loftiest peak since March.


Overnight, the U.S. Dollar Index fell slightly on Monday, but remained near four-month highs as currency traders awaited the start of the Federal Reserve's two-day July monetary policy meeting for added clarity on the pace of the U.S. central bank's current tightening cycle. On Tuesday in Asia, the index was last quoted at 97.28.


Currency traders appeared hesitant to take any outsized risks in Monday's session ahead of the start of the Federal Open Market Committee's (FOMC) two-day July monetary policy meeting on Tuesday morning. While the FOMC is unlikely to make any adjustments to its benchmark Federal Funds Rate, the U.S. central could provide key hints on the timing of its next interest rate hike.


Since the Fed's historic rate hike last December, the Committee has responded by leaving the Fed Funds Rate steady at a level between 0.25 and 0.50% in each of its first four meetings in 2016. When the Fed approved a 25 basis point rate hike at the end of last year, the FOMC abandoned a seven-year Zero Interest Rate Policy by ratifying their first interest rate hike in nearly a decade.

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Dollar in gains despite weak ISM report.


The dollar held onto gains against the other major currencies on Monday, even after data showed that manufacturing activity in the U.S. fell more than expected in July, but the greenback still remained within close distance of a five-week trough.


The Institute for Supply Management said its index of manufacturing activity dropped to 52.6 last month from June’s 53.2. Analysts had expected the index to tick down to 53.0 in July.


The dollar recovered from sharp losses posted after the Bank of Japan approved only moderate stimulus measures at Friday monetary policy meeting, disappointing markets which were hoping for much more aggressive easing.

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Dollar trims gains after U.S. jobless


The dollar trimmed gains against the other major currencies on Thursday, after the release of downbeat U.S. data and as investors turned their attention to Friday’s nonfarm payrolls report.


The U.S. Census Bureau said factory orders decreased by 1.5% in June, better than forecasts for a decline of 1.8%. Factory orders fell 1.2% in May, in a revision from the initial read of a 1.0%.


The report came after the Labor Department said initial jobless claims increased by 3,000 to 269,000 from the previous week’s total of 266,000. Analysts expected jobless claims to decline by 1,000 to 265,000 last week.


The dollar has come under pressure amid diminished expectations for another rate hike by the Federal Reserve this year after last week’s surprisingly weak data on U.S. second quarter growth.

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U.S. Dollar rallies.


The U.S. Dollar Index staged a late-rally on Thursday, amid upbeat employment data, but remained stuck in tight, range-bound trade as currency traders awaited the release of critical monthly retail data at week's end for a better picture on consumer sentiment nationwide.


The Index, which measures the strength of the greenback versus a basket of six other major currencies, rose more than 0.30% on Thursday to an intraday high of 95.90 remaining near 1-week highs. Historically, August is considered to be bullish for the dollar as the aggregate tracker of the dollar has gained an average of 32 basis points per month, according to seasonality trends compiled by DailyFx.com. Since opening the month at 95.49, the dollar is on track for its sixth winning session over the first nine days of trading while edging up by roughly 0.43%. The Dollar Index has closed higher for the month in each of the last two years.

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U.S. Dollar Index falls to 2-month low


The U.S. Dollar Index fell sharply to a two-month trough on Tuesday, extending previous losses over the last week, as investors reacted to soft inflation figures and hints from a top Federal Reserve policymaker that it could be appropriate to raise interest rates in the coming months.


The Index, which measures the strength of the dollar versus a basket of six other major currencies, fell more than 0.90% to an intraday low of 94.38, before rallying slightly to 94.75 at the close of U.S. afternoon trading.


The dollar is on pace for its third straight losing session and its fifth loss over the last six trading days. At session-lows on Tuesday, the index fell to its lowest level since June 9.

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Dollar falls after Fed minutes.


The U.S. dollar erased early gains on Wednesday after minutes from the Federal Reserve's July meeting showed general agreement that more data was needed before the next rate increase from the central bank.


he minutes showed that members of the U.S. central bank's rate-setting Federal Open Market Committee were generally upbeat about the U.S. economic outlook and labor market, but several said a slowdown in the future pace of hiring would argue against a near-term hike.


Analysts said the minutes disappointed traders who expected the Fed to take a more hawkish tone. Those expectations were bolstered Tuesday, when New York Fed President William Dudley and Atlanta Fed President Dennis Lockhart signaled a potential rate increase before the end of the year.

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Dollar Near Two-month High.

The dollar hovered near a two-month high against a basket of currencies on Wednesday, lifted by hawkish comments from a Federal Reserve official and a sharp rise in U.S. Treasury yields.

The dollar index stood at 96.116 (DXY), in sight of 96.442, its highest since Aug. 9.


The greenback was already on a strong footing after rallying at the start of the week on an upbeat survey of the U.S. manufacturing sector.

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Dollar is at 11-Months high.


The dollar continued to trade with 11 months high against the other majors currencies on Tuesday, after upbeat U.S. data boosted optimism over the U.S. economy and added to expectations for a rate hike by the Federal Reserve.


The U.S. Commerce Department said retail sales rose 0.8% in October, compared to expectations for a 0.6% increase.


Core retail sales, which exclude automobile sales, increased by 0.8% last month, compared to forecasts for an advance of 0.5%.

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Dollar index holds steady near fresh 11-month peak.


The dollar held steady near a fresh 11-month peak against the other majors currencies on Tuesday, as upbeat U.S. data boosted optimism over the U.S. economy and added to expectations for a rate hike by the Federal Reserve.

The U.S. Commerce Department said retail sales rose 0.8% in October, compared to expectations for a 0.6% increase.Core retail sales, which exclude automobile sales, increased by 0.8% last month, compared to forecasts for an advance of 0.5%.

In addition, the Federal Reserve of New York said its Empire State manufacturing index climbed to 1.50 in November from -6.80 the previous month. Analysts had expected to improve to -2.50 this month.

The dollar also remained broadly supported amid hopes that increased fiscal spending and tax cuts under a Trump administration will bolster economic growth and inflation.

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Dollar hits 14-year highs on Fed hike.


The dollar rose to 14-year highs against a basket of the other major currencies on Wednesday, spurred higher by expectations for a U.S. rate hike and increased fiscal spending once Donald Trump becomes president.


The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, hit highs of 100.54, a level not seen since April 2003.


The dollar has been boosted by expectations that the Federal Reserve is on track to raise interest rates next month.Better-than-expected U.S. retail sales data on Tuesday strengthened the case for a rate hike.