Dollar at its lowest since November as Trump trade deflates
- Author: Carolyn Briggs Mar 28, 2017,
Mar 28, 2017, 13:44
But the presidential job approval ratings are subject to change. As recently as January, the central bank said an interest rate cut remained on the table.
After a delayed health-care vote was scrapped Friday after Republicans in the House of Representatives couldn't muster enough votes for passage, investors anxious that other efforts - including tax reform and infrastructure spending - could face the same fate.
The president's approval numbers had ticked up over the week, reaching a high of 41%.
US 30-year bond prices rose 12/32, yielding 2.9816 percent.
The dollar index against a basket of major currencies edged up 0.1 percent to 99.252, after plumbing a trough of 98.858 overnight, its lowest level since November 11.
A dip in risk appetite dominated Asian and European stock markets, and the MSCI's all-country world equity index was down 0.17 percent.
Trump's move scraps new requirements for programs that train new K-12 teachers and rolls back a set of rules outlining how states must carry out the Every Student Succeeds Act, a bipartisan federal law meant to hold schools accountable for student performance.
The rupee, however, zoomed by 37 paise to close at a fresh 17-month high of 65.04 per dollar, marking its second biggest single-day gain this year due to weakness in the dollar index overseas and on hopes of more reforms by the Modi government.
"I don't think we will see a total risk-off sentiment from here as the economy remains sound in the USA and the risk sentiment will also recover" after the health-care fracas, said Koji Fukaya, Tokyo-based chief executive officer at FPG Securities Co.
In terms of relative valuations, US stocks are trading well above their historical averages while Asian stocks are still broadly in line with theirs despite a recent bounce. "Against a backdrop of rising USA crude output and underwhelming OPEC-led efforts to normalize bulging global oil inventories, positives are in short supply". Brent crude futures gained 20 cents during Tuesday's Asian session to trade at $50.95 per barrel while U.S. WTI crude futures traded at $47.97 per barrel, a 24 cent gain per barrel.
"We would see the relative lack of reaction in the price perhaps as a reflection of some disappointment that nothing more concrete was forthcoming", analysts at JBC Energy said in a report, referring to the conclusion of Sunday's talks.