CURRENCIES: Dollar Bounces Higher, But Poised For Worst Week In A Month
21 September 2018 - 1:53PM
Dow Jones News
By Anneken Tappe
The U.S. dollar strengthened against its main rivals early
Friday in New York, though the currency was still looking at an
almost 1% weekly loss, while the British pound pulled back from its
highs amid souring sentiment around Brexit negotiations.
The ICE U.S. Dollar Index was 0.1% stronger at 94.028 on Friday,
but still headed for a 0.9% weekly decline, its worst in a month.
Shorter-dated U.S. Treasury yields were on the rise on Friday, with
the 2-year yield adding rising to 2.81% and the 10-year yield
holding above 3%, which lent some support to the greenback.
On the Brexit front, European Union leaders rejected the U.K.'s
post-Brexit proposal, adding pressure for Prime Minister Theresa
May, whose Conservative Party is holding its annual conference next
week.
(https://twitter.com/VPatelFX/status/1043020804278050816)
The next Brexit summit is scheduled for November, but this
week's talks in Salzburg, Austria, seems to have soured the mood
amid both politicians and investors.
The British pound was thus unable to hold on to its gains from
earlier in the week
(http://www.marketwatch.com/story/dollar-slides-as-british-pound-and-new-zealands-kiwi-rally-on-data-2018-09-20)
when hopes for a Brexit resolution had been high. Sterling last
fetched $1.3197, down from $1.3268.
Read:Far-right candidate leads Brazil's polls as investors worry
about reforms, ailing real
(http://www.marketwatch.com/story/far-right-candidate-leads-brazils-polls-as-investors-worry-about-reforms-ailing-real-2018-09-20)
Elsewhere in Europe, Italy's governing coalition is under
pressure has the leader of the 5 Star Movement has threatened to
leave over public spending that would widen the deficit. 5 Star
leader Luigi di Maio and Northern League leader Matteo Salvini
clashed with Finance Minister Giovanni Tria over this. Investors
are awaiting Italy's budget proposal, which some worry won't be
in-line with the EU requirements and could lead to a spat between
Rome and Brussels.
The euro was modestly lower at $1.1770, compared with $1.1779
late Thursday in New York.
(END) Dow Jones Newswires
September 21, 2018 08:38 ET (12:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.