TOKYO (Reuters) – The dollar was on the defensive against its rivals on Tuesday, as traders looked to a Federal Reserve Chairman, and Jerome Powell’s speech, in the middle of the speculation on the rise in the united States might one day adopt a negative interest rate.
FILE PHOTO: A woman counts U.s. dollar bills at her home in the city of Buenos Aires, Argentina, August 28, 2018. This Photo was taken on August 28, 2018. REUTERS/Marcos Brindicci
Risk-sensitive currency lacked momentum-as-a-warning-from-a top U. s. public health, on the dangers of the re-opening of the economy and too soon, it has served as a reminder of the uncertainties facing an economy that has been ravaged by the novel corona virus.
The dollar traded at 107.15 yen JPY=, having slipped from Tuesday, on the sidelines of the summit, or, 107.76, its highest since April 24.
The euro changed hands at $1.0848 EUR=, having gained about 0.4 percent in the previous session.
U. s. The president, Donald Trump, on Tuesday once again pushed the Federal Reserve to adopt a negative interest rate, a hot topic in the financial markets since last week, when the U. S. money-market instruments (ti) has started to price in a chance of negative rates.
U. s. consumer prices fell 0.8% in April, the biggest since the Great Recession, raising the specter, or the deflation of the economy sinks deeper into recession and the debate on the policy responses.
“I would advise against a negative interest rate. Japan has done, but the perception that it was not very good,” said Hiroyuki Ueno, a senior strategist at Sumitomo Mitsui Trust Asset Management.
“But what is worrying is that He is talking about them. Looking to adapt the examples, the Fed has finally done what He wanted often enough.”
Powell, will be speaking on current economic issues in a webinar organized by the Peterson Institute for International Economics, at 9:00 pm (1300 GMT).
Although Federal officials have said that they do not see the need to reduce interest rates below zero (the investors) believe that it will become an option, especially if the corona virus leads to a new deterioration of the U. s. economy.
Top U.s. infectious disease advisor, Anthony Fauci, on Tuesday warned the Congress that a premature lifting or locking could lead to new outbreak of the corona virus deadly.
His comments cast a shadow on the optimism in the global financial markets in recent weeks as the worst period of the epidemic is over and that the economy can only get better.
U. s. the price of the shares also slipped, led by high-flying technology shares, adding to the cautious mood on the economic outlook.
That will put a brake on a rally in risk-sensitive currencies such as the Australian dollar.
The Australian dollar AUD=D3, it stepped back to $0.6473 from Tuesday’s one-week high of $0.6562.
It took an additional blow on Tuesday after China banned dollars of imports of meat, if they trimmed losses later, such as Australia, the minister for trade, has played the problem as a defect of form.
The new zealand dollar stood at $0.6082 NZD=D4, down so far in the week, but within its recent trading range ahead of the announcement of the policy of the central bank of the country later in the day.
The Reserve Bank of New Zealand is expected to maintain its interest rate at 0.25%, while the expansion of its quantitative easing program.
The pound sterling stood near its lowest level in five weeks, at $1.2264 GBP=D4, have hammered that as a result of the confusion over the government’s plans to facilitate this moment of your cube, in the worst COVID-19, the number of deaths across Europe, and revived brexit risks.
The official data published on Tuesday showed Britain without the death of COVID-19, topped 38,000 at the beginning of May, with the location in Italy as the most affected country in Europe.
Reporting by Hideyuki Sano; Editing by Stephen Coates