LONDON, Sept 18, 2018 (News Wires) - The dollar held near seven-week lows against its rivals on Tuesday while riskier currencies gained after US President Donald Trump escalated his trade war with China by imposing 10 per cent tariffs on about $200 billion worth of Chinese imports.
While the greenback has benefited from safe-haven flows amid the escalating Sino-US trade conflict in recent months, the rare spot of weakness in the dollar overnight raised concerns about whether investors are starting to worry about the broader impact of the tariffs on the US economy.
With the latest US moves widely anticipated by global markets, investors awaited the Chinese response to the latest measures and pushed the dollar below a key technical level, potentially opening the door to more losses.
"Unless we see these trade wars start hitting the US consumer directly, this might continue further and we will have to see what the Chinese response will be," said Talib Sheikh, head of multi-asset strategy at Jupiter Asset Management.
The dollar index popped up to 94.607 in the early Asian session but gave up its gains to turn lower on the day. It stabilised at 94.57 after falling to 94.35, its lowest since the end of July.
With Beijing keeping a firm grip on the renminbi in the aftermath of the latest measures and refusing to let it weaken sharply, sentiment was more optimistic towards emerging market currencies and equities.
Stocks in China ended up nearly 2 per cent.
LONDON, Sept 17, 2018 (News Wires) - A softer dollar and short- covering lifted gold on Monday after two sessions of declines, but investors prepared for more weakness as simmering US-China trade tensions suggested the currency would stay supported.
Spot gold was up 0.7 per cent at $1,201.01 an ounce by 14:00 GMT after falling 0.6 per cent on Friday, when it marked its third straight weekly decline. US gold futures added 0.4 per cent to $1,205.70 an ounce.
The dollar index was down 0.4 per cent at 94.506 after seeing its biggest daily rise since Aug. 23 on Friday.
"Net short (speculative) positions in gold... are still at a high level at a good 75,000 contracts... so there is further potential for short covering and therefore for higher prices from this side," Commerzbank said in a note.
China's Foreign Ministry said on Monday that the government would respond if the United States implements new tariffs, ahead of US President Donald Trump's expected announcement of new duties on $200 billion in Chinese goods.
"The main issue is that this concern over trade tensions between the US and China is translating into a stronger dollar, and that is weighing on gold," said Jonathan Butler, commodities analyst at Mitsubishi in London.
"I think we'll continue to see gold under pressure. As long as the dollar remains relatively well supported, yields continue to rise and the US economic growth story remains in place, it's hard to see where a strong rally would come from in gold," Butler said.
Gold prices have declined more than 12 per cent from April, hurt by intensifying global trade tensions and rising US interest rates.
Though gold is generally presumed to be a safe-haven asset, the months- long trade rift between Washington and Beijing has prompted investors to largely opt for the US dollar in the belief that the United States has less to lose from the dispute.
Among other precious metals, spot silver climbed 1.2 per cent to $14.20 an ounce.
Palladium edged up 0.4 per cent to $982 while platinum gained 1.6 per cent to $804.10 an ounce.
Butler said although platinum last month touched a low of $751.25 not seen since the financial crisis in 2008, the supply and demand situation was different.
"Although we're looking at a market that's in a small surplus this year, it's still a very different story from 2008, it doesn't justify platinum having a $700 handle," he said.
"Diesel is in decline, but we still have a healthy 3 million ounces or so of demand from that source this year, as opposed to 2 or 2.5 million in 2008."
LONDON, Sept 14, 2018 (News Wires) - Gold edged higher on Friday, supported by a drop in the dollar, but gains were tempered by expectations of a US rate hike later this month.
The dollar index slipped to a 1-1/2 month low after weaker-than-expected US inflation data and a recovery in emerging markets, but had rebounded to trade slightly firmer in the European afternoon after US industrial output rose.
Spot gold was up 0.2 per cent at $1,202.61 an ounce by 13:50 GMT, having hit its highest since Aug. 28 at $1,212.65 on Thursday. It has risen 0.6 percent so far this week, on track for its first weekly gain in three.
US gold futures dipped 0.1 per cent to $1,207.60 an ounce.
"We've seen quite a bit of weakness in the dollar which has supported gold, but we're not out of the woods yet," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
"The fact that gains weren't stronger has still got to do with gold's focus on the Chinese renminbi, which remains a bit challenged, but also that the market is starting to look forward to the next US rate hike."
Gold has shown a close correlation to the currency of China, the biggest gold consuming nation, analysts say.
Investors widely expect another 0.25 percentage point interest rate hike when the US central bank meets on Sept. 25-26, and there is a strong chance of another increase in December.
Higher rates make gold less attractive since it does not pay interest but costs money to store and insure.
The months-long trade tension between Washington and Beijing has prompted investors to buy the US dollar in the belief that the United States has less to lose from the dispute.
However, the demand for the dollar eased this week on news that the White House had invited Chinese officials to restart trade talks.
Gold prices have declined about 12 per cent from a peak of $1,365.23 in April amid intensifying global trade tensions and under pressure from rising US interest rates. This has driven investors towards record short positions in Comex gold and heavy liquidations in gold exchange-traded funds (ETF).
Holdings of SPDR Gold, the largest gold ETF, were down 0.4 per cent on Thursday and 4.1 million ounces from a April peak.
Meanwhile, spot silver rose 0.1 per cent to $14.18 per ounce, palladium added 0.2 per cent to $984.40 per ounce and platinum gained 0.4 per cent to $803.40 an ounce after touching a one-month high at $812.30 on Thursday.
"We've seen some traders dipping their toes back in platinum, which is at a near record discount to gold," Hansen said.
LONDON, Sept 7, 2018 (News Wires) - Gold steadied on Friday as the dollar slipped versus a currency basket despite fears over looming China-US trade tariffs, and as investors turned their attention to US payrolls data due later.
The public consultation period for proposed US tariffs on an additional $200 billion of Chinese imports ended at 04:00 GMT Friday. Tariffs could go into effect at any moment, though there is no clear timetable.
The dollar has gained considerably from global trade tensions but slipped off two-week highs this week, helping gold stabilise. A weaker dollar makes dollar-priced gold cheaper for non-US investors.
"I'm struggling to (see) how the dollar could extend gains from here. Other central banks are becoming hawkish, the pound could come back up and the euro, once the ECB starts tightening. Gold is due for a rally," said Fawad Razaqzada, analyst at FOREX.com.
Spot gold edged up 0.1 per cent to $1,201.04 as of 10:20 GMT, after it hit a near one-week high on Thursday at $1,206.98, and was headed for a third straight session of gains.
US gold futures rose 0.2 per cent to $1,206.70 an ounce.
CAIRO, June 28, 2018 (MENA) - The Finance Ministry decided to fix the customs dollar exchange rate at LE16 as of 1st July and for one month, Minister Mohamed Maait announced on Thursday.
The customs dollar exchange rate comes close to the exchange rate of the dollar in the banking sector by 90 per cent, he added.
The customs dollar is the price by which the proportion of customs duties and taxes on imports of goods from abroad are calculated.
Egypt began setting a monthly customs exchange rate in January 2017, following the flotation of its currency in November 2016.
TOKYO, June 18, 2018 (News Wires) - The dollar edged up towards a seven-month high on Monday as investors bet the United States and China would avoid a full-blown trade war, although tensions between the two slowed its gains.
The dollar index versus a basket of six major currencies crept up 0.1 percent to 94.862.
The index was close to 95.131, a peak scaled on Friday, thanks to the dollar soaring more than 1 percent last week after the US Federal Reserve gave a hawkish signal on interest rates while the European Central Bank struck a dovish tone.
On top of last week’s Fed, ECB and the Bank of Japan policy meetings, the currency markets also weighed a US-North Korea summit and the renewed trade tensions between the world’s two biggest economies.
The greenback navigated through those events, last of which was a decision by the United States on Friday to enact tariffs on $50 billion in Chinese goods. Soon afterward, China’s official Xinhua news agency said Beijing would impose 25 percent tariffs on 659 US products, ranging from soybeans and autos to seafood.
“The reaction by currencies to the trade developments has been mostly limited as the US measure and China’s response were in line with expectations,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo.
“A further escalation of US-China trade tensions is of course a risk scenario. But the current tariffs, even if implemented, will hardly dent the global economy and the market also has to ponder about a scenario in which the two countries try to defuse tensions.”
The dollar was down 0.2 percent at 110.44 yen, weighed down as risk appetites cooled on the back of falling Tokyo shares.
The Nikkei fell on Monday with sentiment hurt by a combination of trade concerns and a strong earthquake that hit the western Japanese city of Osaka.
Even when natural disasters and regional tensions hit close to home, the yen is often viewed as a safe haven currency, partly because of the resilience provided by Japan’s current account surplus.
Despite the slip, the dollar managed to stay in reach of a three-week high of 110.905 yen brushed on Friday.
The euro fell 0.15 percent to $1.1592, extending losses after sliding 1.3 percent the previous week after the ECB signalled it will keep interest rates at record lows well into next year.
Commodity-linked currencies sagged on the back of sliding crude oil prices.
The Canadian dollar traded at C$1.3184 per dollar after retreating to a one-year low of C$1.3210 on Friday.
The Australian dollar was little changed at $0.7442 after plumbing a five-week low of $0.7426 and the New Zealand dollar lost 0.25 percent to $0.6928 .
Brent crude futures fell to a six-week low of $72.45 a barrel on Monday in the wake of reports that top suppliers Saudi Arabia and Russia would likely increase production at the June 22 OPEC meeting in Vienna.
The OPEC meeting “will be one of this week’s key events due to the way oil prices shape economic and price views and thus impact yields and currencies,” said Koji Fukaya, president at FPG Securities in Tokyo.