· The dollar languished near one-week lows on Thursday after benign data on U.S. consumer prices and a decline in Treasury yields led some investors to trim bets on a rapid acceleration in inflation.
The euro was in focus ahead of a European Central Bank meeting later in the day where policymakers are expected to send a message that they will prevent bond yields from rising further and harming the bloc’s economic outlook.
The dollar index against six major currencies was flat at 91.79 after hitting a one-week low of 91.75 earlier in Asia as data showed U.S. core consumer price growth slowed slightly in February.
Against the euro, the dollar was quoted at $1.1932 per dollar, nursing a 0.2% loss from the previous session, while versus the safe-harbor Swiss franc, the greenback bought 0.9299 franc.
The dollar and U.S. Treasury yields have been rising steadily due to expectations that the Fed’s loose monetary policy and fiscal stimulus will stoke inflation. The yield on the benchmark 10-year Treasury was at 1.528% on Thursday after hitting a one-year high of 1.626% last week.
Focus later in the day will be on an auction of 30-year U.S. Treasuries after an auction of 10-year notes on Wednesday drew sufficient demand, easing concerns about investors’ ability to absorb an increase in debt needed to finance the response to the pandemic.
Overall, analysts said sentiment for the dollar remained fairly positive as the U.S. economy recovers from the Covid-19 pandemic and as President Joe Biden’s $1.9 trillion stimulus bill won final approval in Congress.
The British pound bought $1.3935 after rising 0.3% on Wednesday.
The yen was the only major currency to cede ground to the dollar, falling about 0.2% to 108.55 yen.
· South Korea extends use of AstraZeneca COVID-19 vaccine to people aged 65 and over
South Korea will extend vaccination for people aged 65 years and older with AstraZeneca’s coronavirus vaccine to ramp up its immunisation drive, Prime Minister Chung Sye-kyun told a government meeting on Thursday.
· China's smartphone shipments build on post-pandemic rebound in February
China’s smartphone shipments increased more than threefold in February 2021 from a year ago, government data published on Thursday showed, signaling an encouraging rebound from last year’s nadir as the pandemic peaked in China.
Shipments of smartphones within China jumped 236.6% annually to 21.3 million handsets in January, according to the China Academy of Information and Communications (CAICT), a state-backed think tank.
That was up from 6.3 million in February 2020 and higher than the 14.9 million in February 2019, suggesting China’s smartphone sector has returned to its pre-pandemic levels.
· China Lawmakers Wrap Whirlwind Session Focused on Managing Risks
China will bring its biggest annual political gathering to a close, with Premier Li Keqiang’s once-a-year news briefing in focus, along with a series of votes on Hong Kong that could stoke tensions with the West.
The National People’s Congress will approve measures to overhaul Hong Kong’s election system and a policy blueprint designed to reduce China’s technological dependence on the U.S. in a closing session set for 3 p.m. Thursday in Beijing. Shortly thereafter, Li will discuss everything from economic growth to financial markets in one of the rare occasions when a top leader of the world’s second-largest economy takes questions from the media.
· China parliament overwhelmingly approves change to Hong Kong electoral syste
China’s parliament on Thursday overwhelmingly approved a decision to change Hong Kong’s electoral system, which will give Beijing more control over who gets to be nominated and elected to run the Asian financial hub, Hong Kong’s TVB reported.
The National People’s Congress voted 2,895 in favour of the decision to empower its standing committee to draft the amendments to Annex I and II of Hong Kong’s Basic Law, its mini-constitution, with no opposing votes and one abstention, the report said.
· Singapore hasn’t given up on air travel bubble with Hong Kong, says minister
Singapore has not given up on forming a bilateral “air travel bubble” with Hong Kong that would allow travelers to skip quarantine, the Southeast Asian country’s Transport Minister Ong Ye Kung told CNBC.
· Australia unveils $928 million COVID-19 stimulus package for tourism industry
The Australian government unveiled a A$1.2 billion ($928 million) tourism support package on Thursday, aimed at boosting local travel while international routes remain closed because of the coronavirus pandemic.
The basket of airline ticket subsidies for travellers, cheap loans to small tour companies and financial aid for the country’s two largest airlines is designed to keep the critical sector ticking over until foreign tourists return.
“This package will take more tourists to our hotels and cafes, taking tours and exploring our backyard,” Morrison told reporters in Sydney.
“That means more jobs and investment for the tourism and aviation sectors as Australia heads towards winning our fight against COVID-19 and the restrictions that have hurt so many businesses.”
· U.S. imposes sanctions on children of Myanmar military leader, companies
The United States on Wednesday imposed sanctions on two children of Myanmar’s military leader Min Aung Hlaing and six companies they control in response to the military’s Feb. 1 coup and the killing of protesters since the takeover.
The U.S. Treasury Department said in a statement it blacklisted Aung Pyae Sone and Khin Thiri Thet Mon, the adult children of Myanmar’s commander in chief who led the coup and installed himself as head of the ruling State Administration Council.
· Vimeo reviewing use of its platform by Myanmar military-controlled TV network
U.S. video sharing platform Vimeo said on Thursday it is reviewing a channel by Myanmar military-controlled television network MRTV created in the wake of bans by Facebook and Youtube.
The move comes as activists call upon technology firms including IAC-owned Vimeo to restrict the Myanmar army from access to their services after dozens of deaths during weeks of protests against the military’s seizure of power.
· Oil prices rise on economic outlook, drawdown in fuel stocks
Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.
Brent crude oil futures for May rose 55 cents, or 0.8%, to $68.45 a barrel by 0328 GMT, while U.S. West Texas Intermediate crude for April was up 52 cents, or 0.8%, at $64.96.
“Gasoline stocks fell... (which) provided the bullish offset and eventually sent oil prices higher on the strong demand for end products, hence an economic recovery,” said Stephen Innes, Chief Global Markets Strategist at Axi.
“Given the powerful signals from the U.S. re-opening narrative, it still suggests that the path of least resistance for oil prices is higher.“
U.S. gasoline stocks fell by 11.9 million barrels in the week to March 5 to 231.6 million barrels, the Energy Information Administration (EIA) said, compared with expectations for a 3.5 million-barrel drop.
Crude inventories, however, rose by 13.8 million barrels in the week to March 5 to 498.4 million barrels, compared with analysts’ expectations in a Reuters poll for an 816,000-barrel rise, as the nation’s oil industry continued to feel the effects of a winter storm mid-February that stalled refining and forced production shut-ins in Texas.
Globally, stocks also remain ample with crude oil in storage at major land and sea hubs rising last week, according to analysts and ship trackers.
Meanwhile, the U.S. House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in American history, a sweeping $1.9 trillion Covid-19 relief bill that gives President Joe Biden his first major victory in office.
Saudi Arabia’s foreign minister on Wednesday said the kingdom would take deterrent action to protect its oil facilities, following attacks by Yemen’s Iran-aligned Houthi movement on energy sites.
Reference: CNBC, Reuters
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