Edition:
India

Saqib Iqbal Ahmed

As dollar slides, some investors fret about its status as world’s reserve currency

05 Aug 2020

NEW YORK Some investors are worried the U.S. response to the coronavirus pandemic is dealing a body blow to the dollar, potentially accelerating what has so far been a slow erosion in the greenback's status as the world's dominant reserve currency.

Dollar rally fizzles as investors eye stimulus talks in Washington

05 Aug 2020

NEW YORK The U.S. dollar edged lower in choppy trade against a basket of currencies on Tuesday, choking off a recent rally fueled by dollar bears taking profits on short positions, while investors watched talks in Washington on the next round of coronavirus relief.

King dollar's decline ripples across the globe

28 Jul 2020

An accelerating decline in the U.S. dollar is reverberating around the world, adding fuel to a global momentum rally that has boosted prices for everything from technology stocks to gold.

CANADA FX DEBT-C$ eases vs U.S. dollar; set to finish week up about 1%

25 Jul 2020

* Canadian dollar at C$1.3428 or 74.47 U.S. cents * Bond prices fall across the maturity curve (Updates prices, adds details on U.S. data) By Saqib Iqbal Ahmed July 24 The Canadian dollar eased against its U.S. counterpart on Friday, but was set to finish the week about 1% higher, as the U.S. currency remained broadly weaker, weighed down by American economic uncertainty as coronavirus cases rise and U.S.-China relations further deteriorate. The Canadian dollar was at C$1.3425 to the greenback, or 74.49 U.S. cents, weaker than Thursday's close of C$1.3407, or 74.59 U.S. cents. The loonie remained close to a six-week high hit on Thursday. "To a large extent though, the CAD is still the tail of the FX dog and, with no domestic data ahead until next Friday’s GDP report, the CAD will remain a slave to USD flows, crude oil, and the broader market tone," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. The U.S. dollar fell against the Japanese yen on Friday after China's foreign ministry told the U.S. embassy early on Friday to close its consulate in the city of Chengdu, after Washington ordered the closure of the Chinese consulate in Houston. The greenback also slipped against the euro after a survey showed euro zone business activity bounced back to growth in July. Separately, data showed U.S. business activity increased to a six-month high in July, but companies reported a drop in new orders as a resurgence in new COVID-19 cases across the country weighed on demand. The loonie, which has been helped in recent sessions by rising oil prices, found little of that support on Friday as oil prices were nearly flat on the day. On Friday, Canadian government bond prices were little changed on the day. The two-year yield was at 0.282% down from 0.285% late on Thursday, while the benchmark Canadian 10-year yield was at 0.504% up from 0.503%. (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis)

REFILE-CANADA FX DEBT-C$ eases vs U.S. dollar; on pace to end week up about 1%

24 Jul 2020

(Refiling to fix typographical error in headline to make it "pace" instead of "face") * Canadian dollar at C$1.3428 or 74.47 U.S. cents * Bond prices fall across the maturity curve By Saqib Iqbal Ahmed July 24 The Canadian dollar eased against its U.S. counterpart on Friday, but remained on pace to finish the week about 1% higher, as the U.S. currency remained broadly weaker, weighed down by American economic uncertainty as coronavirus cases rise and U.S.-China relations further deteriorate. The Canadian dollar was at C$1.3428 to the greenback, or 74.47 U.S. cents, weaker than Thursday's close of C$1.3407, or 74.59 U.S. cents. The loonie remained close to a six-week high hit on Thursday. "To a large extent though, the CAD is still the tail of the FX dog and, with no domestic data ahead until next Friday’s GDP report, the CAD will remain a slave to USD flows, crude oil, and the broader market tone," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. The U.S. dollar fell against the Japanese yen on Friday after China's foreign ministry told the U.S. embassy early on Friday to close its consulate in the city of Chengdu, after Washington ordered the closure of the Chinese consulate in Houston. The greenback also slipped against the euro after a survey showed euro zone business activity bounced back to growth in July. The loonie, which has been helped in recent sessions by rising oil prices, found some support on Friday as oil prices edged higher. On Friday, Canadian government bond prices fell across the maturity curve. The two-year yield was at 0.29% up from 0.285% late on Thursday, while the benchmark Canadian 10-year yield rose to 0.524% from 0.503%. (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis)

CANADA FX DEBT-C$ rises as uncertain U.S. economic outlook drags U.S. dollar lower

24 Jul 2020

* Canadian dollar at C$1.3407 or 74.59 U.S. cents * Bond prices mixed across the maturity curve (New throughout, updates prices, market activity and analyst comment) By Saqib Iqbal Ahmed July 23 The Canadian dollar notched a fourth straight day of gains against its U.S. counterpart on Thursday, as an unexpected rise in U.S. weekly jobless claims raised worries about the outlook for the U.S. economy, leaving few takers for the U.S. dollar. The Canadian dollar was at C$1.3407 to the greenback, or 74.59 U.S. cents, stronger than Wednesday's close of C$1.3416, or 74.54 U.S. cents. The loonie touched a 6-week high of 1.3352 to the dollar, earlier in the session. The number of Americans filing for unemployment benefits rose last week for the first time in nearly four months, suggesting the U.S. labor market was stalling amid a resurgence in new COVID-19 cases and depressed demand. "This morning’s snapback in jobless claims helped reinforce the perception that U.S. growth is set to slip relative to the euro area and other major economies, and traders are setting up for a wider-than-previously-expected divergence between U.S. and European PMIs tomorrow," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. Preliminary estimates of July purchasing manager's index (PMI) for the European Union and the United States is expected to be released on Friday. The U.S. dollar was about 0.2% lower against the euro . "As a high-beta currency, the Canadian dollar is simply along for the ride," Schamotta said. The loonie, which has been supported in recent sessions by rising oil prices, came under some pressure earlier in the session as oil prices retreated on concerns about rising U.S. oil inventories and surging coronavirus cases. On Thursday, Canadian government bond prices were mixed across the maturity curve. The two-year yield was at 0.285% up from 0.272% late on Wednesday, while the benchmark Canadian 10-year yield slipped to 0.506% from Wednesday's 0.51%. (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis and David Gregorio)

CANADA FX DEBT-C$ softer as a rise in U.S. jobless claims lifts bruised U.S. dollar

23 Jul 2020

* Canadian dollar at C$1.3421 or 74.51 U.S. cents * Bond prices mixed across the maturity curve By Saqib Iqbal Ahmed July 23 The Canadian dollar edged lower against its U.S. counterpart on Thursday, on pace to snap a three-day streak of gains, as a rise in U.S. weekly jobless claims fueled risk aversion, helping lift the bruised U.S. dollar, and as oil prices eased. The Canadian dollar was at C$1.3421 to the greenback, or 74.51 U.S. cents, weaker than Wednesday's close of C$1.3416, or 74.54 U.S. cents. The number of Americans filing for unemployment benefits rose last week for the first time in nearly four months, suggesting the U.S. labor market was stalling amid a resurgence in new COVID-19 cases and depressed demand. The U.S. dollar, which has come under pressure in recent weeks as investors' appetite for risk improved was broadly firm on Thursday. The U.S. dollar currency index was 0.03% higher on the day. "Risk sentiment diminished after disappointing news on America’s job market renewed worries about the state of the world economy," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. The loonie, which has been supported in recent sessions by rising oil prices, found little of that support on Thursday as oil prices edged lower on concerns about rising U.S. oil inventories and surging coronavirus cases. On Thursday, Canadian government bond prices were mixed across the maturity curve. The two-year yield was at 0.282% up from 0.272% late on Wednesday, while the benchmark Canadian 10-year yield slipped to 0.502% from Wednesday's 0.51%. (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis)

CANADA FX DEBT-C$ at 6-week high vs U.S. dollar after data shows jump in inflation

23 Jul 2020

* Canadian dollar at C$1.3415 or 74.54 U.S. cents * Bond prices mixed across the maturity curve (Updates prices, adds comment) By Saqib Iqbal Ahmed July 22 The Canadian dollar rose to a near-six-week high against its U.S. counterpart on Wednesday, after data showed Canada's annual inflation rate in June posted its biggest acceleration in more than nine years. The inflation rate spiked as restrictions imposed to curb the coronavirus outbreak were lifted, Statistics Canada said on Wednesday. The Canadian dollar was at C$1.3415 to the greenback, or 74.54 U.S. cents, stronger than Tuesday's close of C$1.3456, or 74.32 U.S. cents. "In terms of the Bank of Canada, I don’t think it has a lot of bearing on what the central bank plans on doing with policy," said Royce Mendes, senior economist at CIBC Capital Markets. "The key to remember here is the bank is trying to get a sense of the underlying pace of inflation. So this one-month move, while large in isolation, probably won’t change their view of the economy and how much inflation it’s likely to be able to generate," Mendes said. The Bank of Canada - which says interest rates will remain near record lows for another two years - predicts inflation will remain weak in the near term. "Given the huge amount of spare capacity that has opened up, we doubt that core inflation will return to 2% on a sustained basis within the next few years," Stephen Brown, senior Canada economist at Capital Economics, said in a note. The loonie, which has been in a narrow range against the greenback for the past seven weeks, has benefited from the recent recovery in the price of oil, one of Canada's major exports, and a broad weakness in the U.S. dollar. On Wednesday, Canadian government bond prices were mixed across the maturity curve. The two-year yield was at 0.282% up from 0.272% late on Tuesday, while the benchmark Canadian 10-year yield slipped to 0.507% from Monday's 0.518%. (Reporting by Saqib Iqbal Ahmed in New York; Additional reporting by Allison Lampert in Montreal; Editing by Jonathan Oatis and Peter Cooney)

Fear factor: Investors rush into gold and other havens as stocks near highs

22 Jul 2020

NEW YORK Investors are piling into haven assets such as gold, the Swiss franc and cash as U.S. stocks approach all-time highs, looking to hedge big moves in equities amid economic uncertainty and a resurgent coronavirus pandemic.

CANADA FX DEBT-C$ holds gains vs U.S. dollar after data shows jump in inflation

22 Jul 2020

* Canadian dollar at C$1.344 or 74.40 U.S. cents * Bond prices rise across the maturity curve By Saqib Iqbal Ahmed July 22 The Canadian dollar clung to slim gains against its U.S. counterpart on Wednesday, after data showed Canada's annual inflation rate in June posted its biggest acceleration in more than nine years. Canada's annual inflation rate in June spiked as restrictions imposed to curb the coronavirus outbreak were lifted, Statistics Canada said on Wednesday. June marked the end of two months of deflation. The Bank of Canada - which says interest rates will remain near record lows for another two years - predicts inflation will remain weak in the near term. The Canadian dollar was at C$1.344 to the greenback, or 74.40 U.S. cents, stronger than Tuesday's close of C$1.3456, or 74.32 U.S. cents. "In terms of the Bank of Canada, I don’t think it has a lot of bearing on what the central bank plans on doing with policy," Royce Mendes, senior economist at CIBC Capital Markets, said. "The key to remember here is the bank is trying to get a sense of the underlying pace of inflation. So this one month move, while large in isolation, probably won’t change their view of the economy and how much inflation it’s likely to be able to generate," said Mendes. The loonie, which has been in a narrow range against the greenback for the last seven weeks, was on pace for its third straight day of gains against the greenback and is at a near six-week high. The Canadian dollar has benefited from the recent recovery in the price of oil, one of Canada's major exports, and a broad weakness in the U.S. dollar. On Wednesday, Canadian government bond prices rose across the maturity curve. The two-year yield was at 0.267% down from 0.272% late on Tuesday, while the benchmark Canadian 10-year yield slipped to 0.506% from Monday's 0.518%. (Reporting by Saqib Iqbal Ahmed in New York; Additional reporting by Allison Lampert in Montreal; editing by Jonathan Oatis)

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