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Dollar finds footing as SVB fears calm down
The dollar rose 0.4 percent to 134.72 yen, even as wage talks delivered the biggest pay increases in a quarter century which are likely to pressure monetary policy settings in Japan.
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US One dollar banknotes are seen in front of displayed stock graph in this illustration taken, Feb. 8, 2021. (Reuters/Dado Ruvic)
T
he dollar was attempting to steady in Asia on Wednesday, as investors dialled back bets on US rate cuts and fear of a banking crisis ebbed - though a looming hike in Europe had the euro on a firm footing.
The European Central Bank meets on Thursday and markets think a 50 basis point hike is likely, a more hawkish stance than traders expect from the US Federal Reserve next week.
The euro touched a month high $1.0760 in the Asia session before drifting back to flat at $1.0744. Elsewhere, the last few days' selling pressure on the dollar was abating.
The dollar rose 0.4 percent to 134.72 yen, even as wage talks delivered the biggest pay increases in a quarter century which are likely to pressure monetary policy settings in Japan.
Recent rallies in sterling, Scandinavian currencies, the Australian dollar and the New Zealand dollar also seemed to lose steam - though without really giving back any ground.
Banking stocks bounced and bonds and interest rate futures have given back some of the huge gains they logged following the collapse of three US banks in a matter of days.
"When all the dust clears I think we'll end up with a dollar not being quite as strong and the flow of data will probably resume the center stage," Westpac strategist Imre Speizer said.
