Dollar pinned by easing Fed rate hike expectations
The dollar was softer on Monday, pegged back by sluggish U.S. data that tempered expectations of a Federal Reserve interest rate hike this year.
The U.S. currency was 0.2 percent lower at 101.12 yen JPY= after losing 0.6 percent on Friday, when retail sales and producer prices came in weaker than expected. The euro was up 0.1 percent at $1.11675 EUR=, having risen 0.2 percent on Friday.
The dollar index was a touch weaker at 95.653 .DXY after dropping to 95.254 on Friday, its lowest since August 3.
"After the disappointing retail sales and what our economists see as downside risks to July U.S. consumer price inflation print on Tuesday, we see very limited scope for dollar strength against the euro and the yen," said Petr Krpata, currency strategist at ING in London.
IMF's near-term economic outlook for China positive
The International Monetary Fund (IMF) said Friday that China's near-term economic outlook is positive, with an expected growth rate as high as 6.6 percent this year.
"Many countries could only dream of achieving growth rates that China has and is likely to achieve, which also reflects positively on the reforms that Chinese policymakers have undertaken," said James Daniel, the IMF mission chief for China.
He made the remark on Friday as the financial institution released a report concluding its annual economic health check on the Chinese economy.
Japan Aso: Weak second quarter GDP due to consumption, exports
apanese Finance Minister Taro Aso said on Monday that downbeat gross domestic product data for the second quarter was due to weak consumer spending and falling exports.
Aso told reporters after a cabinet meeting that the government had already compiled a stimulus package and it was important to push ahead with structural reforms to spur growth.
He also said the Bank of Japan's negative interest rate policy is having a positive impact by lowering the yield curve and funding costs for companies.
Oil hits August high on potential producer action to prop up market
Oil prices rose on Monday to fresh highs for the month of August, with the Brent benchmark gaining 11 percent since the start of the month, as speculation intensifies about potential producer action to support prices in an oversupplied market.
Brent crude oil futures rose to a high for the month of $47.40 a barrel on Monday before dipping back to $47.30 per barrel at 0644 GMT (2:44 a.m. ET), up 33 cents from their last settlement, and 11.3 percent above the last close in July.
U.S. West Texas Intermediate (WTI) crude futures rose to a high of $44.95 a barrel before dipping to $44.85 a barrel, still up 36 cents from their last close. WTI has gained more than 7 percent in August.
Reference: Reuters,Xinhua,
Thai
Eng