FOREX-Dollar strengthens as vaccine, stimulus optimism dented

By Chuck Mikolajczak NEW YORK, Oct 13 (Reuters) – The U.S. dollar strengthened on Tuesday as investors turned cautious after a Johnson & Johnson Covid-19 study was paused while a gauge of inflation rose for a fourth straight month. Major equity averages were lower, partly due to a decline in […]

By Chuck Mikolajczak

NEW YORK, Oct 13 (Reuters)The U.S. dollar strengthened on Tuesday as investors turned cautious after a Johnson & Johnson Covid-19 study was paused while a gauge of inflation rose for a fourth straight month.

Major equity averages were lower, partly due to a decline in J&J shares after the company paused due to an unexplained illness in a participant, dampening optimism a vaccine was on the horizon.

U.S. consumer prices rose 0.2% in September, matching expectations, for a fourth straight monthly climb, though the pace has slowed amid considerable slack in the economy as it gradually recovers from the COVID-19 recession.

The dollar index =USD rose 0.416% against a basket of other currencies, putting it on track for its biggest daily percentage gain in three weeks.

The U.S. currency’s safe-haven appeal has been curbed by growing expectations former U.S. Vice President Joe Biden’s win in the Nov. 3 presidential election would bring large stimulus for the pandemic-hit economy, bolstering the stock market and investor risk appetite.

The greenback has held within a range of about 2% over the past three weeks as talks on a fiscal deal have progressed in fits and starts. On Tuesday, U.S. House Speaker Nancy Pelosi said the offer President Donald Trump recently made on a package after he scrapped talks fell far short of what the American people need, but she still hopes a deal can be reached.

Sterling GBP= was last trading at $1.2987, down 0.59%, after climbing above the $1.30 mark for the first time in a month on Friday as Britain’s unemployment rate rose by more than expected to 4.5% in the three months to August.

In addition, as a deadline looms, British Prime Minister Boris Johnson told his top cabinet ministers on Tuesday he wanted a free trade deal with the European Union on the right terms but ending the year without one held “no fear.”

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Currency bid prices at 10:29 AM (1429 GMT)

Description

RIC

Last

U.S. Close Previous Session

Pct Change

YTD Pct Change

High Bid

Low Bid

Euro/Dollar

EUR=EBS

$1.1753

$1.1815

-0.52%

+4.83%

+1.1815

+1.1742

Dollar/Yen

JPY=D3

105.5350

105.3550

+0.21%

-2.80%

+105.6200

+105.2900

Euro/Yen

EURJPY=

124.03

124.40

-0.30%

+1.71%

+124.4700

+123.9800

Dollar/Swiss

CHF=EBS

0.9135

0.9092

+0.50%

-5.58%

+0.9142

+0.9091

Sterling/Dollar

GBP=D3

1.2988

1.3066

-0.60%

-2.07%

+1.3067

+1.2960

Dollar/Canadian

CAD=D3

1.3130

1.3109

+0.19%

+1.10%

+1.3146

+1.3100

Aussie/Dollar

AUD=D3

0.7165

0.7211

-0.64%

+2.12%

+0.7210

+0.7157

Euro/Swiss

EURCHF=

1.0734

1.0738

-0.04%

-1.09%

+1.0745

+1.0726

Euro/Sterling

EURGBP=

0.9048

0.9040

+0.09%

+7.03%

+0.9074

+0.9020

NZ Dollar/Dollar

NZD=D3

0.6639

0.6647

-0.18%

-1.40%

+0.6670

+0.6630

Dollar/Norway

NOK=D3

9.2020

9.1545

+0.60%

+4.99%

+9.2215

+9.1390

Euro/Norway

EURNOK=

10.8160

10.7914

+0.23%

+9.94%

+10.8381

+10.7769

Dollar/Sweden

SEK=

8.8086

8.7884

-0.33%

-5.76%

+8.8280

+8.7569

Euro/Sweden

EURSEK=

10.3539

10.3884

-0.33%

-1.10%

+10.4100

+10.3307

(Reporting by Chuck Mikolajczak)

(([email protected]; @ChuckMik; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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