Friday, April 27, 2018 | ePaper

Dollar dumped on worries China may bail on US bonds

  • Print
AFP, London :
The dollar slumped on Wednesday following a report that China may slow or halt its purchases of US government bonds, with Wall Street stocks also opening lower.
Bloomberg News reported that officials reviewing China's foreign-exchange holdings have recommended slowing or halting purchases of US Treasuries, citing people familiar with the matter. The dollar tumbled against the euro, which shot up above $1.20, and against the yen.
"If the reports turn out to be true and China no longer sees Treasuries as an attractive option, the repercussions could be significant as the country is one of the biggest holders of US debt," said Craig Erlam, senior market analyst at currency trading firm OANDA.
Fewer Chinese purchases of US bonds would likely see interest rates paid to attract buyers climb higher, and thus the US Federal Reserve would have less need to hike rights.
"The tightening effect of such measures would likely have an impact on how many times the Federal Reserve raises interest rates this year, which is why we've seen a corresponding drop in the dollar," said Erlam.
A senior US official downplayed the impact of possible scaledown of Chinese purchases of Treasuries.
"The US treasury market is a deeply robust market within the world (and) with our economy strengthening it will remain a deeply robust market," US Under Secretary of the Treasury David Malpass said during a visit to Brussels.
Wall Street stocks, after closing at record highs on Tuesday, were on the back foot in Wednesday trading.
The Dow was down 0.2 percent in late morning trading.
Meanwhile in Europe, London's benchmark FTSE 100 index hit a record intra-day high of 7,756.11 points. It closed the day up 0.2 percent at 7,748.51.
In the eurozone, Frankfurt's DAX 30 dropped 0.8 percent and the Paris CAC 40 shed 0.4 percent.

More News For this Category

Prime Finance gets new MD

Prime Finance gets new MD

Business Desk :Md. Ahsan Kabir Khan has been appointed as the Managing Director of Prime Finance and Investment Limited, said a press release.Prior, he was the Additional Managing Director

Stocks end the week marginally up

BSS, Dhaka :Stocks ended the week today marginally up with a rising trend of major indices at Dhaka and Chittagong stock exchanges on higher transactions. Turnover, a crucial indicator

Md. Abul Kalam Azad, LGED Chief Engineer and Saiful Islam Kamal, Chairman of Navana Construction, exchanging agreement signing documents on construction of 600-metre long bridge over Kaliganga River in Nesarabad upazila in Pirojpur District at LGED headquarter in the city on Thursday. Md. Allah Hafiz, Project Director of Bridge Construction Project of LGED, Md. Shahidullah, Executive Director of the construction company and high officials from both the organizations were also present.

Md. Abul Kalam Azad, LGED Chief Engineer and Saiful Islam Kamal, Chairman of Navana Construction, exchanging agreement signing documents on construction of 600-metre long bridge over Kaliganga River in Nesarabad upazila in Pirojpur District at LGED headquarter in the city on Thursday. Md. Allah Hafiz, Project Director of Bridge Construction Project of LGED, Md. Shahidullah, Executive Director of the construction company and high officials from both the organizations were also present.

.

DCCI urges Indian investors to invest in BD

DCCI urges Indian investors to invest in BD

Business Desk :DCCI President Abul Kasem Khan urged to remove the trade barriers between Bangladesh and India. He said in 2016-17 Bangladesh exported $672.404 million to India and imported

Supporting women to get priority in intellectual property law: Amu

Business Desk :Industries Minister Amir Hossain Amu on Thursday said providing government's patronisation and support to women in creative innovation will be prioritised in the National Intellectual Property Act.The

KGDCL gets new MD

KGDCL gets new MD

Chittagong Bureau :Engineer Khayez Ahmed Mojumder has joined Karnaphuli Gas Distribution Company Limited as Managing Director on Tuesday, said a press release.Engineer Khayez Ahmed started his career as 1st

Mosleh Uddin Ahmed, Managing Director of NCC Bank Limited, presiding over a day long

Mosleh Uddin Ahmed, Managing Director of NCC Bank Limited, presiding over a day long "Periodical Business Conference for Managers and Executives" at the bank's head office in the city recently. Khondoker Nayeemul Kabir, AZM Saleh, Md. Habibur Rahman, DMDs, Muhammad H Kafi, Head of Operations and Engr. Shamsur Rahman Chowdhury, SEVP of the bank were also present.

.

Tofail urges Cambodian businessmen to import Bangladeshi products

Business Desk :Commerce Minister Tofail Ahmed said Cambodian businessmen could be benefited by importing world-class products from Bangladesh."Bangladesh is exporting quality pharmaceuticals, RMG, plastic, leather and jute-made products etc

Premier Bank gets new MD

Premier Bank gets new MD

Business Desk :The Board of Director of Premier Bank Limited has appointed M Reazul Karim, as their new Managing Director (MD) and Chief Executive Officer (CEO) recently, said a

Female bikers to share ride with OBHAI

UNB, Dhaka :Ride sharing service OBHAI Solutions Limited, better known as OBHAI, has recruited a pool of women bikers who will be sharing ride with the company.The women bikers