The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
May 6, 2025 DOWNLOAD
View all Reports
Currencies 3 MIN READ

Dollar gains as investors see Fed stance likely unchanged; euro, sterling fall

October 5, 2022By Reuters
Related Articles
Nvidia's options primed for USD 300-billion price swing after earnings November 20, 2024 Curtain comes down on quarter to forget September 28, 2023 Oil slips as investors weigh Fed rate decision March 20, 2024

NEW YORK, Oct 5 (Reuters) – The dollar rebounded from recent weakness on Wednesday as investors viewed the US Federal Reserve’s aggressive stance on interest rates as likely unchanged, with the euro and sterling down at least 1% each.

The euro was down 1% at USD 0.9892, and was set for its biggest daily percentage slide since Sept. 23, after rising 1.7% on Tuesday.

Sterling was down 1.1% at USD 1.1344 after rising for six straight sessions. Its fall extended slightly as UK Prime Minister Liz Truss pledged to bring down debt as a share of national income, just over a week after the government’s plans to slash taxes and ramp up borrowing spooked markets.

Adding to the pressure on the pound, data showed Britain’s private-sector economy last month suffered the sharpest contraction in activity since a COVID-19 lockdown early last year.

A dollar index measuring the greenback against a basket of currencies was last up about 1%. On Tuesday, it had its biggest daily percentage decline since March 2020.

Recent gains for most major currencies against the dollar have been underpinned by hope among investors and traders that the Fed will raise interest rates by less than previously expected.

“You had a general risk-on where the euro, sterling really traded well and the stock market gained. I kind of think this is just (investors) exploring a trading range,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

“The bottom line is the bounce in risk assets is not taking place because of a change in Fed views,” he said.

On Wednesday, the ADP National Employment report showed private employment rose by 208,000 in September, above the 200,000 consensus forecast of economists polled by Reuters, while separately the Institute for Supply Management’s (ISM) non-manufacturing PMI reading came in slightly above expectations.

Also, US Fed Governor Philip Jefferson reiterated overnight that inflation was the top target for policymakers and that growth would suffer in efforts to bring it down.

San Francisco Fed President Mary Daly took a softer line and said the impact of the dollar, which is up sharply this year, on other currencies and economies was a concern.

From here, investors are likely to focus on Friday’s US jobs report, Bannockburn’s Chandler said, which will be watched for clues on the possible trajectory of the Fed’s monetary policy.

In other currencies, the dollar was up 0.2% against the Japanese yen, while the dollar was up 0.4% at 7.0676 against China’s offshore yuan. Chinese authorities have come out in recent weeks with maneuvers to slow the yuan’s slide.

A fifth consecutive 50-basis-point rate hike from the Reserve Bank of New Zealand (RBNZ) on Wednesday reminded investors that inflation remains the main focus of central banks.

The New Zealand dollar was last up 0.1% at USD 0.5744, having jumped as much as 1.3% earlier in the session. The Aussie dollar was near flat at USD 0.6502.

(Additional reporting by Harry Robertson in London. Additional reporting by Tom Westbrook in Sydney; Editing by Bernadette Baum and Jonathan Oatis)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks Model Portfolio
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up