Share<\/a>Dollar on track for worst week since August<\/p>\nGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n
It\u2019s been a rough week for the US dollar, which is set for its biggest weekly drop in two and a half months.<\/p>\n
Rising trade tensions between the US and China, and worries that America\u2019s economy may be weakening, have pulled down the greenback against other currencies this week.<\/p>\n
The dollar index, which tracks its performance against a basket of currencies, has lost 0.95% so far this week \u2013 the biggest five-day drop since early August.<\/p>\n
A chart showing the US dollar index’s weekly moves Photograph: LSEG<\/p>\n
The dollar weakened after Donald Trump threatened new 100% tariffs on China in a row over its rare earth exports last Friday.<\/p>\n
Earlier this week, US trade representative Jamieson Greer claimed those export restrictions were a \u201cglobal supply-chain power grab\u201d, denting hopes of d\u00e9tente between Washington and Beijing.<\/p>\n
Concerns about the US economy \u2013 which is currently in an economic data blackout due to the government shutdown \u2013 is encouraging some investors to diversify away from assets such as the dollar, and Treasury bills, into harder assets such as gold.<\/p>\n
Suspicions that US interest rates could be cut steadily in the months ahead are also weighing on the dollar.<\/p>\n
Raffi Boyadjian, lead market analyst at Trading Point, explains:<\/p>\n
The US dollar\u2026has been sliding since trade relations started to worsen again. Against a basket of currencies, the dollar tumbled to a more than one-week low today before recovering slightly.<\/p>\n
Fed Chair Powell\u2019s remarks this week have also been weighing on the greenback. An October rate cut is almost certain after Powell once again emphasized the growing downside risks to the labour market, even in the absence of official payrolls data.<\/p>\n
The ongoing government shutdown is another risk that could upend the dollar\u2019s mini rebound since mid-September.<\/p>\n
The agendaShare<\/a><\/p>\nUpdated at\u00a008.31 CEST<\/p>\n","protected":false},"excerpt":{"rendered":"Key events Show key events only Please turn on JavaScript to use this feature The pound has climbed…\n","protected":false},"author":2,"featured_media":83797,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[138,220,111,139,69],"class_list":["post-83796","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/83796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=83796"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/83796\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/83797"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=83796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=83796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=83796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}