February 6, 2018 / 3:46 PM / 8 months ago

FOREX-Global stock market jitters lift dollar

    * Dollar index increases for third straight session
    * Greenback brushes off worsening U.S. trade gap
    * Yen, Swiss franc retreat as Wall Street pares early losses

 (New throughout, updates exchange rates, market activity,
comments; new byline, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Feb 6 (Reuters) - The dollar rose on Tuesday to
its highest level in more than a week against a basket of
currencies as traders piled back into the greenback after a
global stock market rout wiped out $4 trillion in value.
    The dollar index climbed for a third straight session from a
three-year low on buying from traders closing out bearish bets
against the dollar versus the euro, sterling and riskier,
commodity-linked currencies.
    On Monday, the Dow and S&P 500 U.S. stock indexes posted
their biggest declines since August 2011. This led traders to
buy dollars even though the stock sell-off also led investors to
moderate their expectations of Federal Reserve rate hikes.
    "The dollar is shrugging off expectations of fewer Fed rate
hikes," said Joe Manimbo, senior market analyst at Western Union
Business Solutions in Washington. "It's enjoying a
short-covering and a broader safe-haven bid instead."
    Traditional safe-haven currencies like the Japanese yen and
Swiss franc lost ground against the greenback as Wall Street
opened with losses that were much smaller than what the futures
market had signaled in overnight trading.
    "Wall Street will dictate where the rest of the stock
markets and currency market go," Manimbo said.
    At 10:23 a.m. (1523 GMT), the dollar index was up
0.48 percent at 89.984.
    The dollar rose 0.15 percent to 109.25 yen and gained 0.82
percent to 0.9390 Swiss franc.
    The yen and franc receded from session highs when Tokyo's
Nikkei index at one point posted its biggest point drop since
November 1990.
    Currencies at risk during a global equity slump are
higher-yielding commodity-linked currencies like the Australian
dollar and emerging market currencies, which often slide when
risk appetite drops, analysts said. 
    These currencies reversed much of their initial losses on
Tuesday in step with U.S. stock prices. 
    The Australian dollar fell 0.17 percent to $0.79, while the
Mexican peso fell 0.03 percent to 18.77 peso.
    On Wall Street, the S&P 500 was down 0.23 percent at
2,642.84. It shed 4.1 percent on Monday, its biggest daily
percentage point loss since August 2011.
    Currency traders shrugged off data that showed the U.S.
trade deficit widened in December to its biggest level in nine
years.
========================================================
    Currency bid prices at 10:24AM (1524 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.2321        $1.2367     -0.37%         +0.00%      +1.2433     +1.2316
 Dollar/Yen       JPY=        109.2500       109.0900    +0.15%         +0.00%      +109.6400   +108.4700
 Euro/Yen         EURJPY=     134.61         134.92      -0.23%         +0.00%      +135.7800   +133.9900
 Dollar/Swiss     CHF=        0.9387         0.9314      +0.78%         +0.00%      +0.9397     +0.9307
 Sterling/Dollar  GBP=        1.3864         1.3957      -0.67%         +0.00%      +1.3999     +1.3837
 Dollar/Canadian  CAD=        1.2519         1.2537      -0.14%         +0.00%      +1.2565     +1.2503
 Australian/Doll  AUD=        0.7864         0.7877      -0.17%         +0.00%      +0.7890     +0.7836
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1568         1.1518      +0.43%         +0.00%      +1.1602     +1.1514
 Euro/Sterling    EURGBP=     0.8884         0.8858      +0.29%         +0.00%      +0.8910     +0.8856
 NZ Dollar/Dolar  NZD=        0.7290         0.7263      +0.37%         +0.00%      +0.7318     +0.7258
 Dollar/Norway    NOK=        7.8485         7.8346      +0.18%         +0.00%      +7.8888     +7.7805
 Euro/Norway      EURNOK=     9.6707         9.6884      -0.18%         +0.00%      +9.7479     +9.6594
 Dollar/Sweden    SEK=        7.9917         7.9793      -0.23%         +0.00%      +8.0090     +7.9291
 Euro/Sweden      EURSEK=     9.8473         9.8704      -0.23%         +0.00%      +9.8899     +9.8436
 
    
 (Additional reporting by Tommy Wilkes in New York; Shinichi
Saoshiro in TOKYO; editing by William Maclean, Alexander Smith
and David Gregorio)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below