11 October 2021
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar hits 2-1/2-year high against yen as Fed tapering seen on track
- Asia shares bounce, dollar breaks higher on yen
- Oil climbs to $80 as energy crisis deepens
The dollar ticked up to a 2-1/2-year high versus the yen on Monday after a soft U.S. payrolls figure did little to alter market expectations that the U.S. Federal Reserve will announce it will start tapering its massive bond-buying next month. The U.S. economy created the fewest jobs in nine months in September, with nonfarm payrolls increasing 194,000, way below economists’ forecast of 500,000.
The yen, known to be most sensitive to yield differentials, reacted by slipping to as low as 112.32 yen per dollar, a level last seen in April 2019. The euro was soft at $1.1575, hovering a tad above its Wednesday’s low of $1.1529, its weakest level since July last year. The dollar’s index stood at 94.09, not far from its one-year high of 94.504 touched earlier this month.
The British pound held firmer at $1.3623, extending its recovery from a nine-month low set late last month, on growing expectations that the Bank of England could raise interest rates to curb soaring inflation. The Canadian dollar changed hands at C$1.2473 per U.S. dollar, having hit a two-month high of C$1.24525 on Friday thanks to surprisingly strong Canadian payrolls data and lofty oil prices. Elsewhere, the offshore Chinese yuan changed hands at 6.4438 per dollar, its Oct. 1 high of 6.4286.
Asian shares rallied on Monday courtesy of gains in China which also helped U.S. stock futures pare early losses, while rising Treasury yields lifted the dollar to a near-three-year peak against the Japanese yen..
Hong Kong’s Hang Seng index rose 1.73% in morning trade. Mainland Chinese stocks were also higher, with the Shanghai composite up 0.22% while the Shenzhen component advanced 0.286%. In Japan, the Nikkei 225 rose 1.57% while the Topix index jumped 1.36%. Elsewhere, shares in Australia lagged, with the S&P/ASX 200 down 0.54%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.55% higher.
Oil steadied near the psychological $80-a-barrel mark as a global power crunch rattled the market while OPEC+ output has been slow to ramp up.
It steadied near the psychological $80-a-barrel mark as a global power crunch rattled the market while OPEC+ output has been slow to ramp up.
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