Dollar Pares Gains After Hitting Near 2-month High

By | January 29, 2020
Dollar Pares Gains After Hitting Near 2-month High

The U.S. dollar was steady against major currencies on Tuesday, ahead of the Federal Reserve’s monetary policy statement, due on Wednesday. The currency’s safe-haven appeal amid concerns about the impact of the coronavirus spread on the global economy helped its uptick.

The dollar index hit a near 2-month high, rising to 98.16 in late morning trades. It however, shed gains and was last seen at 97.99, up just 0.03% from previous close.

Against the Euro, the dollar was flat at $1.1022 after having strengthened to $1.0999 earlier in the day.

Against Pound Sterling, the dollar rose to $1.3022, gaining nearly 0.3%.

The Yen was weaker by about 0.25% against the dollar, with a unit of dollar fetching 109.16 yen, compared to 108.90 yen Monday evening.

The dollar was flat at 0.6762 against the Aussie, giving up earlier gains.

Against Swiss franc, the dollar was notably stronger at 0.9730, while against the loonie, it was down at 1.3159.

In economic news, data from the Commerce Department showed new orders for U.S. manufactured durable goods rebounded by much more than anticipated in the month of December.

The report said durable goods orders surged up by 2.4% in December after tumbling by a revised 3.1% in November.

Economists had expected durable goods orders to rise by 0.5% compared to the 2.1% slump that had been reported for the previous month.

According to a report released by the Conference Board, consumer confidence in the U.S. showed a notable improvement in the month of January, withe index climbing to 131.6 in the month, from an upwardly revised 128.2 in December.

Economists had expected the consumer confidence index to rise to 127.8 from the 126.5 originally reported for the previous month.

In an update about coronavirus, China reported 24 more deaths from the epidemic, taking the number of fatalities to 106 and raising concerns about a hit to global economic growth. More than 4,500 people have been reportedly infected, with cases reported in about ten countries.

Chinese President Xi Jinping said today that China was sure of defeating the “devil” coronavirus that has killed 106 people.

However, amid continued worries about the virus outbreak, French and Japanese governments have organized evacuations. Hong Kong is planning to suspend rail and ferry links with the mainland.