Forex - Dollar Unchanged as Safe-Haven Demand Stays Subdued


The dollar was unchanged on Thursday as safe-haven demand remained subdued after a rebound in U.S. stocks overnight.

The U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 96.523 by 12:30 AM ET (05:30 GMT).

The S&P 500 closed higher Wednesday as energy stocks bounced back after oil prices rebounded from a more-than-a-year low.

The Dow Jones Industrial Average closed flat, the S&P 500 rose 0.3%, while the Nasdaq Composite rose 0.92%.

Members of the FAANG stocks closed higher, with Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) rose more than 1%.

The U.S. Department of Labor reported Wednesday that initial jobless claims rose by 3,000 to a seasonally adjusted 224,000 last week, missing economists’ forecast for a drop to 215,000.

Meanwhile, core durable goods orders rose 0.1% last month, the Commerce Department said. That was below consensus estimates for a 0.4% rise.

The Federal Reserve’s future rate hike policy received moderate attention as traders start to question if the central bank could continue to increase rates without risking a slowdown in the U.S. economy.

According to a Reuters poll, analysts expected three more increases next year, taking the federal funds rate to 3.00-3.25% by the end of next year, although the third rate rise is a close call.

“The Fed is widely expected to hike in December.. but this meeting is getting a lot more focus as market is looking for any change in forward guidance,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The USD/CNY pair was little changed at 6.9296 as the People's Bank of China (PBOC) set the yuan reference rate at 6.9391 vs Wednesday's fix of 6.9449.

Elsewhere, the AUD/USD pair and the NZD/USD pair traded 0.1% and 0.4% lower respectively.

The USD/JPY pair slipped 0.04% to 113.02.

Source: www.investing.com