Wall Street Slides Pushing Dollar Down Against Yen
The interest rate hike by the Federal Reserve had not helped dollar, as much as it was expected. The dovish hike with Yellen’s comments has not increased the investors’ confidence. The stock market, which looked like a raging bull a few days ago experienced a downhill, as the benchmarks lost more than 1%. The financial stocks lost 2.5%, while the industrial stocks lost 1.4%. Both the 2-year and 10-year treasury yields fell to reach a three-week low.
The proposed health bill by Trump White House may not be passed by the Congress. The investors are also aware that tax reform and infrastructure spending will be delayed even further. This has not helped the US dollar in the forex market. The winner in this scenario is yen, which reached 112.87 from 111.69. Euro also gained 1.08 against the dollar.
The dollar has reached a four-month low against Yen and the scenario is expected to persist for a while. The greenback allure was also diminished, due to the financial decisions of the Fed. The US equities have been falling and it has worried the experts. Financial strategists watch the market closely to determine, whether the equities will fall much further. The Trump trade was influencing equities, which directly determine the US yields. When the US yields continue to stumble, the dollar will suffer against various international currencies. The dollar index was maintained at 99.707, as it recovered from a 1 ½ month low of 99.642. Oil prices too fell further, while gold steadied at $1245 per ounce.
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