Dollar on defensive as markets eye U.S. politics, Fed minutes
August 17, 2020 @ 14:33 +03:00
The dollar edged lower and commodity currencies inched higher on Monday as investors were relieved by a delay in a review of the U.S.-China trade pact which left the deal intact.
Uncertainty ahead of a week that includes minutes of the U.S. Federal Reserve’s last policy meeting and the U.S. Democratic Party’s nomination convention kept a lid on sentiment, with limited moves by midday in London.
Against a basket of currencies the dollar traded 0.1% lower at 92.982, roughly in the middle of the range it has held since dropping to a two-year low in late July.
The United States and China postponed a Saturday review of their Phase 1 trade deal, people familiar with the plans told Reuters, citing scheduling conflicts. The euro traded higher by 0.1% against the dollar at $1.1850.
The yield on benchmark 10-year U.S. debt rose almost 15 basis points last week, its sharpest weekly rise in two months, which weighed on the yen by attracting investment from Japan. U.S. 10-year yields slipped to 0.6882% on Monday, while the yen was a tad firmer at 106.51 per dollar.
New Zealand delayed a general election by a month on Monday as it grapples with a new outbreak of the coronavirus in Auckland.
Dollar on defensive as markets eye U.S. politics, Fed minutes, Reuters, Aug 17