The dollar declined and Treasury yields edged lower on bets that US rate cuts could come sooner than expected, after a report that President Donald Trump is considering an early appointment for the next Federal Reserve chairman. A Bloomberg gauge of the currency dropped as much as 0.4% to hit its lowest level since April 2022. Its big losses were against the Japanese yen and Taiwan‘s currency. Treasury yields declined at every major maturity, with 10-year yields down two basis points to 4.27%. The moves came after a Wall Street Journal report that Trump may announce Fed Chair Jerome Powell’s replacement by September or October, an unusually early appointment that may effectively create a shadow Fed chair with the power to influence market sentiment. That has bolstered expectations that US interest rates will be cut sooner than previously expected. A broad gauge of regional equities was up around 0.5%, while US equity futures were slightly higher. Tech stocks got a boost from the overnight rally in Nvidia Corp., which pushed the giant chipmaker’s shares to an all-time high. Oil gained for a second day as investors grappled with an uneasy ceasefire in the Middle East. Despite stabilizing prices, the market remains on edge. Russia said it was open to another output hike at the next OPEC+ meeting. Trump’s combative relationship with the Fed has fueled uncertainty about the pace of interest rate cuts at a time when traders are being forced to weigh up a series of mixed signals. Economists widely expect rising tariffs to be passed on to consumers, putting pressure on inflation — but there are also hopes the Fed will look ahead to the likely impact on real incomes and labor market activity when deciding its next move. Fed governors Christopher Waller and Michelle Bowman recently signaled they would be open to lowering rates as soon as July if inflation remains contained. But Powell remains guarded: He told a Senate committee on Wednesday that it was “very hard to predict” the inflationary impact of the levies, after reiterating his message earlier this week that the Fed doesn’t need to rush to rate cuts. The dollar has tumbled more than 8% this year, as traders responded to on-again, off-again tariffs and raised broader questions about the role of the greenback in global trade. A basket of Asian currencies hit an eight-month high against the dollar on Thursday, and fund managers think there may be more gains to come. Elsewhere, Hong Kong’s de-facto central bank spent more than a billion dollars propping up the city’s exchange rate, as it manages a currency peg that has been strained by volatility in the dollar. US After Hours MU +2.2%, WS +13.7%, MLKN +9.9% higher on earnings; SCS -3.4%, JEF -2.7% lower on earnings; KTOS -5.5% on stock offering
Nikkei +1.39% Hang Seng -0.51% CSI +0.00% Shanghai +0.10% Shenzen +0.39%
Eur$ 1.1679 CNH 7.1614 CNY 7.1657 JPY 144.81 GBP 1.3702 CHF RUB TRY WTI$ Gold BTC ETH
S&P +0.13% Nasdaq +0.18% EuroStoxx +0.15% FTSE -0.14% Dax +0.22% SMI +0.14%
Macro :
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- Dollar’s Worst Drop in Decades Risks Ending 2008 Bull Trend
- Dollar’s Worst Drop in Decades Risks Ending 2008 Bull Trend
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Keep an eye on :
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- MBG GY : Mercedes Unveils Electric Hypercar Concept Ahead of Key Summer
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- OGC CN ; OceanaGold Sees ‘Boring’ Dual-Listing Boosting Shares: ECM Watch
- PNDORA DC : Pandora, Amazon Track Down Counterfeit Jewelry Network: Borsen
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- RCO FP : Remy Cointreau New CEO Marilly to Get €800,000 Base Salary
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