Desk Business
Global share markets took a battering on Monday with the Nasdaq dropping more than 4% in a sell-off led by mega-cap growth stocks. Meanwhile, oil prices fell around 6%, extending declines on Tuesday as coronavirus lockdowns in China, the top oil importer, fed worries about demand. Lower oil prices also hurt the Canadian dollar, which touched C$1.3037 per dollar, its weakest since November 2020 and the Norwegian crown touched 9.7184 per dollar, its lowest since June 2020.
Commodity price declines drove down the Australian and Canadian currencies on Tuesday, but the dollar held stable versus most other major currencies and bitcoin continued to fall. The Australian dollar fell to $0.6920, its lowest level since July 2020, after falling 1.7 percent overnight, which CBA analysts ascribed to global asset price falls. “In the immediate term, the backdrop of increased financial market volatility suggests AUD could fall more against the USD and other major crosses,” they noted.
Suggestion For You:
The dollar index was steady at 103.7 on Tuesday morning, having risen as high as 104.19 overnight, a fresh 20-year peak. It later lost some ground after Atlanta Fed President Raphael Bostic hosed down talk of a 75-basis points at the Fed’s next meeting. In recent weeks, markets have priced in a reasonable chance of such a massive hike.
U.S. Treasury yields have climbed on expectations the Fed will aggressively tamp down inflation, which has caused the dollar to rise for five straight weeks. The benchmark 10-year yield edged back under 3% on Tuesday to 2.9846%.
Bostic’s moderate remarks helped the Japanese yen recover a little from a fresh 20-year low of 131.34 yen per dollar hit overnight. The Japanese currency, which is sensitive to moves in U.S. yields, strengthened a little more on Tuesday to 130.1. The beaten down euro was a fraction higher at $1.0561 and sterling was little changed at $1.2329.
There was also excitement in crypto markets, where bitcoin fell below $30,000 for the first time since July 2021. The world’s largest cryptocurrency is trading largely in line with other so called risk assets, such as tech stocks. It was last a little firmer around $30,600.
For Latest News Follow us on Google News
- Show all
- Trending News
- Popular By week
The UK will delay its ban on the promotion of high-sugar meals
Mandaviya: Ayushman Bharat Digital Mission is revolutionizing the healthcare industry
Tech Mahindra Q4 net up 39.2% YoY to Rs 1,506 cr, up 10% sequentially
US economic outlook weakens, inflation likely to persist
Shanghai declares victory over COVID, lifting Chinese stocks
Analysts say Vodafone Idea’s debt is a challenge; critical fundraising for competitiveness
Maruti Suzuki selects a site in Haryana for a new production facility, with an initial investment of Rs 11,000 crore
Tesla halts India entry plan after tariff deadlock
Gone, morning toss-TGIF?
