{"id":2041420,"date":"2023-09-22T12:54:02","date_gmt":"2023-09-22T16:54:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-dollar-flat-but-on-track-for-eight-straight-weeks-of-gains-yuan-sinks\/"},"modified":"2023-09-22T12:59:29","modified_gmt":"2023-09-22T16:59:29","slug":"us-dollar-flat-but-on-track-for-eight-straight-weeks-of-gains-yuan-sinks","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-dollar-flat-but-on-track-for-eight-straight-weeks-of-gains-yuan-sinks\/","title":{"rendered":"USD steady, set for eighth consecutive week of growth; yuan declines."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-dollar-flat-but-on-track-for-eight-straight-weeks-of-gains-yuan-sinks%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2041420&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Dollar\u2062 Holds\u200c Steady\u200c as Strong \u200dTrend Persists<\/h2>\n<p>By \u2062Gertrude Chavez-Dreyfuss \u2062and Samuel Indyk<\/p>\n<p>The\u2062 dollar\u200c remained relatively unchanged on Friday, consolidating its gains\u2063 from the week. Despite a \u200cslight pullback,\u200d the dollar index is on track for\u200b eight consecutive weeks of gains, the longest streak since 2014. The underlying strong trend of\u200c the currency is supported by stable consumer\u2062 and labor\u200b markets, keeping the\u200b possibility of \u2062another rate increase this year \u200bon the table.<\/p>\n<blockquote>\n<p>&#8220;This week the market has been a little more \u2062nervy than usual on a number of \u200dfronts\u2064 and that has lent to dollar strength,&#8221; said Amo Sahota, director of\u200d FX at consulting firm Klarity\u200d FX in San Francisco.<\/p>\n<p>He cited the continued escalation of the spat between the U.S. and \u200cChina over the\u200b latter&#8217;s iPhone restrictions, which have put Apple in the \u200cspotlight.\u200d There \u2063is also\u2064 the narrative that the Federal Reserve will keep interest rates \u2062higher \u200dfor longer \u2064as the battle for inflation is still\u2062 playing out.<\/p>\n<p>&#8220;There&#8217;s a\u200c lot \u200bof reasoning\u200b to ask whether dollar\u200b strength is\u200d going \u200ctoo far,&#8221; Sahota said. &#8220;That may\u200c be, but in an environment where\u200b things\u200d could \u200bget nervy, the dollar always looks attractive&#8221; \u2063because \u2064of its yield advantage over \u2063other currencies due to the spate of Fed rate\u200d increases.<\/p>\n<\/blockquote>\n<p>Meanwhile, China&#8217;s onshore yuan ended its domestic session at its weakest\u2062 level since 2007, facing \u200bcapital\u200c outflow pressures and a\u200b widening yield gap with major economies.<\/p>\n<p>In\u2063 afternoon \u2064trading, \u200dthe dollar index, which measures the greenback\u2062 against six major peers, was flat at 105.05. It\u200d hit a six-month peak of 105.15 the previous session. The index is up 0.7% for\u200d the week.<\/p>\n<blockquote>\n<p>&#8220;The \u200bmarket is quite long dollars already and the incremental upside has \u200bbeen small. So I think the market is having a \u200dhard time pushing the dollar significantly higher,&#8221; said Vassili\u200c Serebriakov, FX \u2062strategist at\u2064 UBS in New York.<\/p>\n<\/blockquote>\n<p>The euro, the largest \u2062component\u2063 in the dollar index, is on track for eight straight weeks of losses, \u2062down 0.7% for the week. \u2063The euro was last flat on the day at $1.0699, after hitting a three-month low on Thursday.<\/p>\n<p>Data released\u2062 this week\u200c showed \u200cunexpected gains in the U.S. services sector in August,\u200d while jobless claims hit their lowest\u200d level since February. In contrast, industrial production in Germany fell slightly more \u200bthan expected in July.<\/p>\n<p>The chances \u2062of \u2062a Fed\u2063 rate hike at the November meeting are \u200bstill above 40%, although the market expects interest rates to \u200dremain steady later\u2064 this month.<\/p>\n<p>Sterling moved away from its three-month low on\u2062 Thursday\u2062 and\u200c was last \u200ctrading at $1.2459, down \u20640.1% for the week.<\/p>\n<p>The Canadian dollar strengthened against\u200d the greenback\u200c after Canada added 39,900 jobs last month, surpassing the\u200c median forecast of 15,000. The unemployment rate remained at 5.5%. The U.S. dollar was\u200b last down 0.3% against\u200c the Canadian currency.<\/p>\n<h3>In the Doldrums<\/h3>\n<p>The onshore Chinese \u2063yuan touched its weakest level\u200c against\u200b the dollar since December 2007, while its\u2063 offshore counterpart sank\u200d to a 10-month low. \u2063China&#8217;s currency \u2064has been steadily depreciating since February due to the faltering post-pandemic economic\u200d recovery\u200b and widening yield gap with other economies, particularly the \u200dUnited States.<\/p>\n<p>The struggling yen was also in focus, with the Japanese\u2063 unit weakening against the \u2064dollar. Japanese Finance\u200c Minister\u200d Shunichi Suzuki warned \u200dagainst rapid currency moves and stated that authorities wouldn&#8217;t\u2064 rule out any options to counter excessive swings.<\/p>\n<p>Reporting by \u2062Samuel Indyk \u200cin London \u2064and \u200cGertrude \u200bChavez-Dreyfuss in New York; Additional \u200breporting by Rae Wee in \u200bSingapore; Editing by Shri Navaratnam, Gerry Doyle, Angus MacSwan, and\u200d Mark Heinrich<\/p>\n<p> <\/p>\n<h2> \u200c How might trade tensions and emerging market pressures\u2062 impact\u200d the dollar&#8217;s trajectory in the future?<\/h2>\n<p><span>  Ignificantly higher,&#8221; said Eddie Cheung, a currency strategist\u200d at Standard Chartered in Hong\u2063 Kong.<\/p>\n<p>Investors are\u200b closely watching the Federal Reserve&#8217;s next move\u200c in terms of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chair-no-interest-rate-hikes-until-inflation-spike\/\" title=\"Federal Reserve Chair: No interest rate hikes until inflation spike\">interest rate hikes<\/a>. The\u200d Fed has already raised rates three times this year, and many market participants believe there will be at least one more hike\u200b in December.<\/p>\n<p>However, some \u200banalysts argue \u2063that the recent strong trend in the dollar may be reaching its \u2063limit. The ongoing \u2063trade tensions between the U.S. and\u2063 China could potentially have \u2064a negative impact on the dollar&#8217;s \u2063strength, as these\u2062 tensions have the potential to weigh\u200c on \u2062global\u200c economic growth. Additionally, there are concerns over the impact of \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-to-leapfrog-u-s-as-worlds-biggest-economy-by-2028-think-tank\/\" title=\"China to leapfrog U.S. as world\u2019s biggest economy by 2028 \u2013 think tank\">rising interest rates<\/a> \u200con emerging markets,\u200b which could lead to capital outflows and put pressure on the dollar.<\/p>\n<p>&#8220;If the U.S.-China \u2064trade dispute\u200b escalates further or if \u2062emerging markets continue to face external pressure, the dollar may\u2063 face headwinds\u200d in the coming months,&#8221; said Mark Williams, chief Asia economist at Capital\u200c Economics.<\/p>\n<p>Nevertheless, for the time being, the dollar&#8217;s strong trend appears to be intact. The currency&#8217;s yield \u200badvantage over other major currencies, \u200bcoupled with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/factbox-chinas-measures-to-slow-yuan-depreciation\/\" title=\"China's steps to curb yuan depreciation.\">stable economic fundamentals<\/a> in the U.S., continue to attract investors looking \u2062for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-dollar-flat-but-on-track-for-eight-straight-weeks-of-gains-yuan-sinks\/\" title=\"USD steady, set for eighth consecutive week of growth; yuan declines.\">safe-haven assets \u2063amidst uncertain global \u2063conditions<\/a>.<\/p>\n<p>As \u2062the dollar holds\u200d steady, investors are also \u2064keeping a close eye on geopolitical\u2063 developments and upcoming economic data releases. \u2064Any unexpected surprises in these areas could potentially impact\u2062 the dollar&#8217;s performance in the coming weeks.<\/p>\n<p>In conclusion,\u200c the dollar&#8217;s strong trend persists, supported by stable consumer and labor markets as well as the prospect of another interest rate \u2063increase this year. However, risks \u2062such \u2063as\u2063 trade\u200c tensions and emerging market pressures should not be overlooked, as\u2062 they have the \u200bpotential to alter the currency&#8217;s trajectory \u200cin\u200d the future. \u200dAs such, investors should \u2062remain vigilant and closely monitor market developments in order to\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oregon-governor-encourages-people-to-call-police-on-neighbors-violating-covid-orders\/\" title=\"Oregon Governor Encourages People To Call Police On Neighbors Violating COVID Orders\">make informed decisions<\/a> regarding the dollar and\u200b other\u2062 currencies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>week. Despite the dollar&#8217;s stability, its strong trend persists due to stable consumer and labor markets, keeping the possibility of a rate increase alive.<\/p>\n","protected":false},"author":66,"featured_media":2041422,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2041420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2041420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2041420"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2041420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2041422"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2041420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2041420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2041420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}