The dollar headed for its worst week since 2009 as traders boosted
bets the Federal Reserve will keep interest rates on hold this year.
Demand for government debt sent Japan’s 10-year bond yields to a record
low.
Asia’s regional stock gauge resumed its decline, led by
Japanese shares, as the yen headed for its biggest weekly gain in more
than six years.
European and U.S. stock futures both declined. Japan’s 10-year yields extended a slide toward zero, fueled by the central bank’s move to negative interest rates. The Bloomberg Dollar Spot Index has fallen 2.4 percent this week as economists forecast U.S.
government data on Friday will show jobs growth in January was the weakest since September.
Patchy U.S. data ignited the dollar’s retreat this week, while concern the American economy is vulnerable to global headwinds fueled the declines.
The fixed-income market is pricing in no Fed rate hikes this year, as central banks from Asia to Europe have mixed success trying to quell the turmoil that’s roiled markets in 2016.
While a weaker dollar makes commodities more appealing in other currencies, oil is heading for its first weekly loss since mid-January as U.S. inventories rise to a record.
“Expectations are growing by the day that the Fed will not hike again this year given the weaker growth picture and tightening financial conditions,” Jason Wong, a currency strategist in Wellington at Bank of New Zealand Ltd., wrote in an e-mail to clients.
“The key release is U.S. employment data overnight, which is expected to show some payback in employment growth in January.”
European and U.S. stock futures both declined. Japan’s 10-year yields extended a slide toward zero, fueled by the central bank’s move to negative interest rates. The Bloomberg Dollar Spot Index has fallen 2.4 percent this week as economists forecast U.S.
government data on Friday will show jobs growth in January was the weakest since September.
Patchy U.S. data ignited the dollar’s retreat this week, while concern the American economy is vulnerable to global headwinds fueled the declines.
The fixed-income market is pricing in no Fed rate hikes this year, as central banks from Asia to Europe have mixed success trying to quell the turmoil that’s roiled markets in 2016.
While a weaker dollar makes commodities more appealing in other currencies, oil is heading for its first weekly loss since mid-January as U.S. inventories rise to a record.
“Expectations are growing by the day that the Fed will not hike again this year given the weaker growth picture and tightening financial conditions,” Jason Wong, a currency strategist in Wellington at Bank of New Zealand Ltd., wrote in an e-mail to clients.
“The key release is U.S. employment data overnight, which is expected to show some payback in employment growth in January.”
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