NEW YORK, June 20 (Xinhua) — The U.S. dollar treaded water on Tuesday as buyers saved a wait-and-see stance in the future forward of Fed Chairman Jerome Powell’s listening to within the U.S. Congress.
The dollar index, which measures the buck in opposition to six main friends, was up 0.01 % to 102.5371 in late buying and selling.
The dollar gained floor on Tuesday morning, because of expectation-beating housing begins and permits within the United States in May and powerful safe-haven demand earlier than paring most of its good points within the afternoon.
The United States reported 1.631 million items of annualized housing begins in May, increased than forecast consensus of 1.4 million items and April’s 1.34 million items, in line with knowledge issued by the U.S. Census Bureau on Tuesday morning.
Meanwhile, the annualized charge of permits stood at 1.491 million items in May, increased than forecast consensus of 1.433 million items and 1.417 million items within the earlier month.
The fall in stock markets and decrease commodity costs additionally drove up protected haven demand and bolstered the U.S. dollar on Tuesday.
The U.S. dollar’s rebound is pushed by rising demand for safe-haven property and merchants reacted to encouraging housing begins and constructing permits stories, famous Vladimir Zernov, analyst with market info provider FX Empire.
Powell is scheduled to testify on the U.S. Congress within the coming two days, which attracts buyers’ consideration.
In late New York buying and selling, the euro was all the way down to 1.0917 U.S. {dollars} from 1.0919 {dollars} within the earlier session, and the British pound fell to 1.2759 U.S. {dollars} from 1.2779 {dollars} within the earlier session.
The U.S. dollar purchased 141.3700 Japanese yen, decrease than 141.9470 Japanese yen of the earlier session. The U.S. dollar rose to 0.8978 Swiss franc from 0.8962 Swiss franc, and it rose to 1.3229 Canadian {dollars} from 1.3214 Canadian {dollars}. The U.S. dollar rose to 10.8024 Swedish Krona from 10.7285 Swedish Krona.
“We expect rate differentials between the U.S. dollar and other currencies to narrow and see the dollar’s downtrend resuming in the months ahead,” mentioned UBS strategists in a mid-year outlook report issued on Tuesday.
Investors are suggested to diversify their holdings of the U.S. dollar and add positions within the Japanese yen, British pound, euro, or the Swiss franc in a tactical method, in line with the usreport.