U.S. dollar rebounds amid market expectation on Fed rate hikes

0 Comment(s)Print E-mail Xinhua, December 6, 2018
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NEW YORK, Dec. 5 (Xinhua) -- The U.S. dollar pared losses in late trading on Wednesday, as investors widely expected the U.S. Federal Reserve to raise interest rates in December following sharp losses of the dollar on Tuesday.

Expectation remained high for the U.S. central bank to raise interest rates at its next policy meeting scheduled for Dec. 18-19 to shore up the safe-haven currency.

The world's most liquid currency bore downward pressure after the yields of two-year and three-year U.S. government bonds surpassed the five-year yield for a second day on Tuesday.

The rarely-seen inversion of the yield curve is normally viewed as a precursor of an economic downturn, sparking broad fears of a slowdown in U.S. economic growth.

The recent broad sell-offs in the stock markets and persistent uncertainty over U.S.-China trade tensions have increased demands for the greenback to avert from riskier assets, paring some of the losses caused by the inverted yield curve.

In late New York trading on Wednesday, the euro decreased to 1.1340 dollars from 1.1341 dollars in the previous session, and the British pound was up to 1.2736 dollars from 1.2717 U.S. dollars in the previous session. The Australian dollar fell to 0.7264 dollar from 0.7337 dollar.

The U.S. dollar bought 113.19 Japanese yen, higher than 112.81 Japanese yen of the previous session. The U.S. dollar rose to 0.9978 Swiss franc from 0.9974 Swiss franc, and it was up to 1.3384 Canadian dollars from 1.3247 Canadian dollars. Enditem

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