Dollar Surges by 0.1% Against Rival Currencies

 

 

The United States of America Dollar, on Monday, June 19, was up just under 0.1 percent against the basket of currencies that measures its broader strength.

Against the dollar, the euro was 0.1 percent lower at $1.1185 after gaining about 0.5 percent on Friday, taking little from French President Emmanuel Macron’s landslide in parliamentary elections on Sunday. The pound was little changed at $1.2796

U.S. market interest rates point to a less than 40 percent chance of the Fed hiking rates by December and data on Friday showed investors had further reduced net bets on the dollar gaining ahead of last week’s Fed meeting.

Friday’s Bank of Japan meeting, however, played down even the chance of it beginning to reduce emergency stimulus for the economy and the yen was again weak on Monday, down 0.2-0.3 percent against the dollar and euro.

Polls had widely favored Macron and interest in French politics has declined since the risk of a far-right president who might take the country out of the euro abated with his defeat of Marine Le Pen last month.

Sterling was steady ahead of the formal start of negotiations on Britain’s planned exit from the European Union, expected by many analysts to generate negative headlines for the currency in the weeks ahead.

“While medium-term (sterling) appreciation is still likely, the tail risks of a no-deal or disorderly Brexit scenarios have increased, and should weigh on (the pound),” currency strategists from Barclays wrote in a note to clients.

Prime Minister Theresa May is also still struggling to secure the support of Northern Ireland’s DUP party she needs to proceed as a minority government after losing her majority 10 days ago, Reuters reports.

 

 

 

 

 

 

 

 

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