Arab Today, arab today dollar rises on fed comment
Last Updated : GMT 01:38:25
Arab Today, arab today
Arab Today, arab today

Oil and stocks extend gains

Dollar rises on Fed comment

Arab Today, arab today

Arab Today, arab today Dollar rises on Fed comment

The US dollar
Hong Kong - Arab Today

The dollar on Monday clawed back some of last week's losses against emerging market currencies after a top Federal Reserve official raised the prospect of a 2015 interest rate hike, while hopes for a pick-up in demand helped oil to score more gains.

The greenback tumbled after data at the start of the month showed US jobs creation stuttered in September, complicating the Fed's plan to increase borrowing costs and tempering worries about a withdrawal of investment from developing economies.

Regional equities also surged last week on hopes for easier US monetary policy, bouncing back after their worst quarter in four years. And most markets extended those gains on Monday, with Shanghai enjoying a third straight rally after a week-long holiday.

Global markets went into meltdown in August after China devalued its yuan currency, fanning worries about the state of the world's number two economy, while traders were also on edge over the expected US rate rise.

On Sunday Fed vice chairman Stanley Fischer said the bank expected to stick to its plan to tighten monetary policy by the end of the year, although he added that the plans were an "expectation, not a commitment".

He added that "both the timing of the first rate increase and any subsequent adjustments to the federal funds rate target will depend critically on future developments in the economy".

While his comments, on the sidelines of the International Monetary Fund's annual meeting in Lima, do not indicate the Fed will lift rates, they show that policymakers continue to keep it a consideration.

The dollar edged up in Asian trade against emerging currencies, including the Australian dollar, Thai baht and South Korean won.

- Rate hike likely delayed -

It also enjoyed advances against Indonesia's rupiah and the Malaysian ringgit. However, the gains were small compared with last losses of about eight percent against the rupiah and almost seven percent versus the ringgit.

"The only data supporting raising the Fed funds rate has been employment, which has begun to shrink in the last quarter," Evan Lucas, a markets strategist at IG Ltd. in Melbourne, said in an e-mail to clients.

"Coupled with increased talks of the approaching debt-ceiling negotiations, not to mention the 2016 presidential elections, all means we are seeing signs of the liftoff being pushed back, as inflation remains nowhere to be seen," he said, according to Bloomberg News.

The weaker dollar has also helped rally oil prices in recent weeks while bets on a pick-up in demand for the commodity provided further uplift.

Crude prices have risen by more than a quarter since hitting a six-year low in August as worries about a stronger dollar, a supply glut and weak demand ease.

In early trade US benchmark West Texas Intermediate rose 58 percent to $49.92 and Brent was up 40 percent to $52.86.

On Sunday the secretary general of oil cartel OPEC Abdullah el-Badri said he was confident the market will be "more balanced" next year as non-OPEC production contracts and global demand rises. However, he did admit the "market remains oversupplied".

His comments come after he said Thursday demand will rise more than projected this year.

In equity trading Hong Kong rose one percent, Shanghai added 1.5 percent and Seoul gained 0.5 percent. Tokyo was closed for a public holiday. However, Sydney retreated 0.7 percent after rising every day last week.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today dollar rises on fed comment Arab Today, arab today dollar rises on fed comment

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 06:51 2017 Saturday ,18 February

Blames government for economic crisis

GMT 06:35 2017 Saturday ,18 February

MP calls for re-operating closed companies

GMT 13:35 2017 Friday ,17 February

Confirms Britain is biggest investor in Egypt

GMT 15:55 2017 Thursday ,16 February

Egyptian foods completely unobserved nor healthy

GMT 11:18 2017 Wednesday ,15 February

Reveals plan to get out of financial crisis

GMT 12:33 2017 Tuesday ,14 February

Yemeni accuses militias of challenging oil

GMT 18:07 2017 Monday ,13 February

Over 3000 workers lost their jobs
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday