Wednesday, 12 August 2020
- Dollar buoyed by jump in U.S. bond yields
- Asian markets set for mixed trade amid U.S. stimulus wrangling
- Oil eases as U.S. stimulus hopes dim, virus cases rise
Major Currency Rates at 8:44 AM
The dollar found support on Wednesday, as a jump in U.S. yields pushed it higher against the Japanese yen and investors wagered on a broader and deeper U.S. coronavirus recovery.
The yield on 10-year U.S. debt , which rises when bond prices fall, made its steepest gain in two months overnight ahead of a record $38 billion auction later on Wednesday.That attracts investment, particularly from Japan where yields at the front of the curve are pinned around or below zero
USD / INR Technical Analysis
Asian stocks were set for choppy trade on Wednesday after Wall Street dipped amid growing uncertainty about an additional round of U.S. fiscal stimulus. Singapore Nifty was trading 115 points down at 11230 in early morning hours.
Australia’s S&P/ASX 200 rose 0.2% and Japan’s Nikkei 225 was up 0.3%. Hong Kong’s Hang Seng index futures lost 0.21%. U.S. stocks closed lower on Tuesday, with the S&P 500 and Dow snapping a seven-day winning streak and falling late in the session on growing uncertainty about a stalemate in Washington over a fiscal stimulus deal.The Dow Jones Industrial Average fell 0.38%, the S&P 500 lost 0.80%, and the Nasdaq Composite dropped 1.69%.
Oil prices fell about 1% on Tuesday after rising earlier in the session as hopes dimmed for a swift stimulus package to relieve the U.S. economy as coronavirus cases increased globally.
Brent crude futures fell 49 cents, or 1.1%, to settle at $44.50 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 33 cents, or 0.8%, to finish at $41.61 a barrel.
Source : Reuters