Dollar edges higher despite dovish fed talk

The dollar edged higher against the euro Monday, trimming sharp losses that came after last week's dismal US jobs report for March. 

PHOTO: REUTERS

7 Apr7:05 AM

[NEW YORK] The dollar edged higher against the euro Monday, trimming sharp losses that came after last week's dismal US jobs report for March.

After dropping past the US$1.10 per euro threshold in the wake of Friday's employment report, the greenback pulled back to US$1.0928 in late trade Monday.

But it remained weak relative to recent weeks.

That is in part because of a fall in the ISM service sector purchasing managers index from February, as well as dovish talk from New York Federal Reserve president William Dudley, who called US economic growth in the first quarter "quite weak".

Mr Dudley stressed in a speech in New Jersey that given the slowdown, the timing of any move to increase interest rates "remains uncertain because the future evolution of the economy cannot be fully anticipated."

"It will be important to monitor developments to determine whether the softness in the March labor market report evident on Friday foreshadows a more substantial slowing in the labour market than I currently anticipate."

The yen meanwhile sagged in advance of a Bank of Japan monetary policy meeting this week that will have to confront more flat growth in the economy.

AFP

    
 

US: Stocks rise as Fed interest rate fears ease

PHOTO: REUTERS

7 Apr7:07 AM

[NEW YORK] Wall Street stocks rose on Monday on easing concerns about Federal Reserve interest rate increases and as petroleum-linked equities surged on higher oil prices.

The Dow Jones Industrial Average jumped 117.61 points (0.66 per cent) to 17,880.85.

The broad-based S&P 500 rose 13.66 (0.66 per cent) to 2,080.62, while the tech-rich Nasdaq Composite Index gained 30.38 (0.62 per cent) to 4,917.32.

William Dudley, the president of the Federal Reserve Bank of New York, on Monday told a New Jersey gathering that a disappointing March jobs report suggests that first-quarter growth "is likely to be quite weak." Dudley said the timing of Fed interest rate hikes is "uncertain" and will remain dependent on economic data.

AFP

    
 

BlackRock to close or combine some money-market funds: WSJ

      

7 Apr7:13 AM

[NEW YORK] BlackRock Inc, the world's largest money manager, will close or consolidate some money-market funds as the company responds to recent regulatory reforms, the Wall Street Journal reported.

BlackRock is considering changing its fund lineup to comply with rules adopted by the US Securities and Exchange Commission in July, the company said in a letter to clients on Monday, according to the report.

The SEC adopted reforms requiring "prime" money funds used by institutional investors to float their values, instead of letting them maintain a stable value at US$1 per share.

The goal is to prevent investors from getting spooked by the prospect of funds breaking the buck, or their net asset value falling below US$1 per share.

BlackRock has about 50 money-market funds, and the changes will affect more than US$200 billion in client assets and will leave it with about 30 funds, the Journal reported.

REUTERS

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