Dollar holds gains as investors cling to trade hopes
By Tom Westbrook SINGAPORE (Reuters) - The dollar clung to most of its recent gains on Wednesday after U.S. President Donald Trump said a trade deal with China was 'close' but offered no new details on negotiations to send the greenback higher. Hopes for an imminent a deal to wind back tit-for-tat tariffs the world's two largest economies have imposed on each other have lifted the dollar 1% this week to a one-month high of 98.423 overnight against a basket of currencies
By Tom Westbrook
SINGAPORE (Reuters) - The dollar clung to most of its recent gains on Wednesday after U.S. President Donald Trump said a trade deal with China was "close" but offered no new details on negotiations to send the greenback higher.
Hopes for an imminent a deal to wind back tit-for-tat tariffs the world's two largest economies have imposed on each other have lifted the dollar 1% this week to a one-month high of 98.423 overnight against a basket of currencies <.DXY>.
It slipped a little lower to 98.309, though moves were modest as investors waited for more concrete trade news.
Antipodean currencies trod water ahead of a central bank rate-setting decision in New Zealand and after data showed Australian wages growth further slowed, as expected, in the third quarter.
Trump's overnight speech at the Economic Club of New York reprised well-worn criticism of the U.S. Federal Reserve for failing to cut interest rates deeply enough and rhetoric about China's "cheating" on trade.
However he did say a deal "could happen soon," which was enough keep the dollar from slipping.
"(It) was heavy on rhetoric and light on detail, leaving markets none the wiser," National Australia Bank's senior FX strategist Rodrigo Catril said in a note.
The dollar hit a month-high against the euro
China's yuan weakened past the 7-per-dollar mark after the speech and was steady at 7.0232 per dollar
Against the Japanese yen
The British pound
The Australian dollar
The New Zealand dollar
Futures markets have priced in a 75% chance of a rate cut.
"A cut on its own probably wouldn't do to much to the market, but if you got an 'on-hold,' that would be a very big reaction upwards in the kiwi," said Imre Speizer, head of New Zealand strategy at Westpac Bank in Auckland.
"To get a downwards reaction, I think they've got to cut and then signal clearly further cuts to come."
Later on Wednesday, Fed Chairman Jerome Powell is due to testify on the U.S. economic outlook before the congressional Joint Economic Committee at 1600 GMT.
The first public hearings in Trump's impeachment inquiry begin an hour earlier at 1500 GMT.
(Reporting by Tom Westbrook. Editing by Lincoln Feast.)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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