The Fort Worth Press - Dollar weakens further as rate cut bets build, but equities mixed

USD -
AED 3.672498
AFN 64.499053
ALL 80.927638
AMD 360.25116
ANG 1.789785
AOA 917.000325
ARS 1529.117034
AUD 1.423731
AWG 1.8025
AZN 1.695018
BAM 1.743153
BBD 2.009733
BDT 123.405734
BGN 1.747831
BHD 0.376563
BIF 2990.864935
BMD 1
BND 1.275344
BOB 11.749607
BRL 4.976202
BSD 0.99787
BTN 94.679988
BWP 13.746112
BYN 2.929884
BYR 19600
BZD 2.006792
CAD 1.401765
CDF 2316.000565
CHF 0.826665
CLF 0.025154
CLP 993.049731
CNY 6.67805
CNH 6.66831
COP 3156.28
CRC 455.351652
CUC 1
CUP 23.947629
CVE 98.275839
CZK 21.77225
DJF 177.684293
DKK 6.679635
DOP 61.203754
DZD 135.078977
EGP 56.239597
ERN 15
ETB 162.300644
EUR 0.8936
FJD 2.235694
FKP 0.747708
GBP 0.749277
GEL 2.589865
GGP 0.747708
GHS 11.56957
GIP 0.747708
GMD 73.999735
GNF 8830.266031
GTQ 7.627485
GYD 208.984889
HKD 7.84515
HNL 26.789009
HRK 6.730396
HTG 130.769574
HUF 328.35794
IDR 18163
ILS 3.07829
IMP 0.747708
INR 95.15805
IQD 1512.669453
IRR 1832374.99993
ISK 121.820191
JEP 0.747708
JMD 158.361483
JOD 0.708972
JPY 157.4905
KES 129.920139
KGS 87.449997
KHR 4076.467181
KMF 439.492364
KPW 899.999961
KRW 1325.049908
KWD 0.31086
KYD 0.831558
KZT 453.052166
LAK 22453.75425
LBP 89355.252721
LKR 331.329462
LRD 170.126293
LSL 16.531803
LTL 2.95274
LVL 0.60489
LYD 6.390431
MAD 9.801113
MDL 18.010775
MGA 4512.517937
MKD 54.964674
MMK 2099.851486
MNT 3598.994658
MOP 8.061391
MRU 39.878252
MUR 47.130263
MVR 15.459685
MWK 1730.229325
MXN 18.67356
MYR 4.085701
MZN 63.903473
NAD 16.531876
NGN 1351.010084
NIO 36.718506
NOK 9.3382
NPR 151.487981
NZD 1.760858
OMR 0.384487
PAB 0.997776
PEN 3.426858
PGK 4.468607
PHP 63.980979
PKR 276.123227
PLN 3.93891
PYG 5770.996176
QAR 3.637271
RON 4.777403
RSD 105.048979
RUB 80.622084
RWF 1474.255564
SAR 3.744837
SBD 8.07458
SCR 13.788604
SDG 601.500677
SEK 9.9523
SGD 1.280602
SHP 0.7473
SLE 22.949961
SLL 20969.504398
SOS 570.236811
SRD 37.628018
STD 20697.981008
STN 21.835034
SVC 8.730916
SYP 13001.999685
SZL 16.531342
THB 33.809503
TJS 9.195002
TMT 3.51
TND 2.979603
TOP 2.40776
TRY 49.762701
TTD 6.779918
TWD 32.598701
TZS 2646.688007
UAH 45.173665
UGX 4395.741514
UYU 40.018004
UZS 11941.282899
VES 879.788903
VND 25842.5
VUV 118.791596
WST 2.767791
XAF 586.163085
XAG 0.018499
XAU 0.000248893668
XCD 2.70255
XCG 1.798323
XDR 0.707052
XOF 586.163085
XPF 106.293282
YER 236.113983
ZAR 16.635995
ZMK 9001.203468
ZMW 20.061676
ZWL 321.999592
SSP 5745.299755
MXV 2.106765
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

Dollar weakens further as rate cut bets build, but equities mixed
Dollar weakens further as rate cut bets build, but equities mixed / Photo: © AFP

Dollar weakens further as rate cut bets build, but equities mixed

The dollar extended losses Wednesday as traders ramped up bets on the Federal Reserve cutting interest rates in the new year after officials sounded optimistic notes on the battle against inflation.

Text size:

However, equity markets were mixed following another tepid performance on Wall Street, with focus on the release of the central bank's favoured gauge of prices coming up later in the week.

A string of indicators in recent weeks has indicated the US jobs market is softening and the economy slowing down -- but not quickly enough to cause much concern about a recession.

That has encouraged investors to shift back into risk assets, though the latest advance has been tempered by profit-taking ahead of what many hope will be a "Santa rally".

Data shows traders are now betting the Fed will cut rates in June, while they have priced an 80 percent chance of such a move in May, according to Bloomberg News.

Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, has said there could even be one as early as the first quarter.

His comments came as Fed Governor Christopher Waller, usually one of the more hawkish members, struck an upbeat tone in a speech Tuesday.

"I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to two percent," he told the American Enterprise Institute in Washington, referring to the bank's target.

"I am encouraged by what we have learned in the past few weeks -- something appears to be giving, and it's the pace of the economy."

- 'Well-timed pivot' -

His counterpart Michelle Bowman said she would support more hikes if the data suggested they were needed but was much more conditional in her assessment than in the past.

The more dovish comments, combined with falling yields and rate expectations has dragged on the dollar, and it extended losses Wednesday.

It was sitting at its weakest level since September against the yen, while it was at a near four-month low versus the euro and sterling.

It was also off against most other units including the South Korean won, Australian dollar and South African rand.

"The latest round of dovish Fed comments, which open the door to rate cuts in 2024, follows cautious comments from Fed officials in early October, which we noted as the start of the pivot," Tony Sycamore, at IG Australia, said.

"In my 30 years in markets, I have not seen a central bank come close to executing such a well-timed pivot, punctuated by a patch of softer inflation and labour market data."

Still, some analysts pointed out that Fed officials have alluded to higher Treasury yields acting as a substitute for further rate hikes, making it easier to pause, but falling yields were taking away that crutch.

Equity markets struggled for traction ahead of the week's key data release -- the personal consumption expenditures (PCE), which is the Fed's preferred guide for inflation.

Tokyo, Sydney, Seoul, Wellington, Taipei and Jakarta all rose, but Hong Kong, Shanghai, Seoul and Manila slipped.

That came after another unremarkable day on Wall Street, even as data showed US consumer confidence rose more than expected this month and a separate report pointed to healthy sales over the five-day shopping weekend that includes Black Friday.

- Key figures around 0230 GMT -

Tokyo - Nikkei 225: UP 0.1 percent at 33,450.32 (break)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 17,156.51

Shanghai - Composite: DOWN 0.2 percent at 3,032.15

Dollar/yen: DOWN at 146.82 from 147.50 yen on Tuesday

Euro/dollar: UP at $1.1013 from $1.0994

Pound/dollar: UP at $1.2724 from $1.2698

Euro/pound: DOWN at 86.55 pence from 86.56 pence

West Texas Intermediate: UP 0.6 percent at $76.86 per barrel

Brent North Sea crude: UP 0.3 percent at $81.96 per barrel

New York - Dow: UP 0.2 percent at 35,416.98 (close)

London - FTSE 100: DOWN 0.1 percent at 7,455.24 (close)

G.George--TFWP