Dollar firm as markets wary over rising MidEast tensions, wait for Fed



The dollar stood tall against other major currencies on Tuesday as geopolitical risks encouraged investors to flock to the relative safe-appeal of the greenback before a U.S. central bank policy meeting this week, where a rate cut is widely expected.

Though oil prices pulled back slightly after surging to four-month highs on Monday, they remained about 15 per cent higher than Friday’s close as markets remain wary over the threat of a military response to attacks on Saudi Arabian crude oil facilities.

“The dollar is in demand as risk sentiment remains weak and it will be difficult for the Fed to overcome already dovish market expectations,” said Manuel Oliveri, an FX strategist at Credit Agricole in London.

Traders widely expect the Fed will cut interest rates by a quarter of a percentage point on Wednesday, and one more cut is largely priced in before the end of 2019.

Against a basket of its rivals, the greenback edged up 0.1 per cent to 98.66, heading towards a more than a two-year high of 99.37 earlier this month.

The Australian dollar led losers, falling 0.5% after the after the Reserve Bank of Australia flagged an easing bias in meeting minutes.

“They no longer talk about an accumulation of evidence in order to ease again, and highlight risks to the global economy,” said National Australia Bank Senior FX Strategist Rodrigo Catril. “It certainly sounds a lot more dovish than before.”

The drop in the Aussie also pulled the kiwi lower, with the New Zealand dollar weakening 0.4 per cent. against the greenback.

The dollar’s gains were also bolstered by an overnight spike in dollar funding costs.

The overnight rate in the repurchase agreement (repo) market jumped to 4.10 per cent from 2.29 per cent late on Friday, its highest levels seen since the start of the year. Analysts attributed the rise to quarterly federal tax payments and supplies. (Reuters/)

Edited by Abdullahi Mohammed/Oluwole Sogunle

Short Link:

Abdullahi Mohammed

Abdullahi Mohammed: NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. We are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and we strive diligently to ascertain the truth in every news report. Contact: editor @ Disclaimer.

PSDC provides motorized water bodies to remote communities in Kebbi NPA appoints 4 CEOs, 8 AGMs – Official Gunmen kill Amotekun’s body in Oyo NGX indices increase by 0.29% on GTBank and Lafarge Africa rally Senate holds minute’s silence for Bode Olowoporoku We did our best to save Nigeria from insecurity – Ex CDS, Olonisakin Bauchi halts wages of 715 suspected ghost workers – SSG Governor Oyetola inaugurates committee on mining pollution Kwara launches 500 hectare youth farm program Group worries about rising wave of insecurity in southeast Ministry partners with media to control spread of tuberculosis Insecurity: the IGP promises reinforced synergy with the army SFOC instructs Senate with appropriate funding for Nigerian military NEITI and ICPC form joint cooperation on anti-corruption issues in the extractive sector Senate approves Buhari’s $ 1.5 billion and € 995 million external loan requests Customs generates 38.8 billion naira at Onne in the first quarter – Controller Violence against children recedes in development – rights activist IT company offers week-long coding program for kids DR Congo: armed violence in Tanganyika deprives people of health care AU offers industrial-scale agro-processing to boost trade Lagos CARES will support 125,058 inhabitants in 2 years Nigerian Martine Security Trust Fund Bill Gets Second Reading FG inaugurates national gender committee to bridge gender gap International conference on the food security storage system in West Africa: ECOWAS will build a multilateral partnership around its experience COVID-19: DPR recommends rapid antigen diagnostic tests for offshore workers UNICEF hands over cold chain vehicles and equipment to the Expanded Program on Immunization (EPI) of the Ministry of Health and Sanitation Somalia implements innovative project to improve psychosocial support and mental health care for conflict-affected youth through integrated and inclusive approach to peacebuilding COVID-19: UNFPA supports Gombe State with PPE Somalia braces for record levels of displacement as drought sets in US government provides medical supplies to fight COVID-19 pandemic in Zanzibar WHO Regional Director for Africa concludes visit to Ethiopia FIS partners with Flutterwave Coronavirus – Ethiopia: COVID-19 update (April 20, 2021) Senate approves N1.678trn revenue target for NCS Coronavirus – Malawi: COVID-19 update (April 20, 2021) CAF: NPFL Forum congratulates Ikpeazu and NFF for Enyimba’s charter flight agreement Coronavirus – Kenya: COVID-19 update (April 20, 2021) Coronavirus – Eritrea: Ministry of Health announcement (April 20, 2021) Coronavirus – Namibia: COVID-19 update (April 20, 2021) Coronavirus – Gambia: COVID-19 update (April 20, 2021) African air ministers adopt common position on international travel Coronavirus – Rwanda: COVID-19 update (April 20, 2021) Coronavirus – Zambia: COVID-19 update (April 20, 2021) Coronavirus – Nigeria: COVID-19 update (April 20, 2021) Coronavirus – South Africa: COVID-19 update (April 20, 2021) China administers more than 200 million doses of COVID-19 vaccine AIMS and Baden-Württemberg International (BW_i) organize a virtual conference on digitization and health Etisalat and Nokia deliver super-fast 5G broadband services to UAE Why we held a public meeting on national security – Lai Mohammed Security: the Minister will present the recommendations of the public meeting to the CEN