US Dollar Index (DXY) remains depressed below 99.00; seems vulnerable to slide further
The USD drifts lower for the second straight day and moves away from an over two-month top.
Economic risks stemming from the US government shutdown and trade war undermine the buck.
Bets for more interest rate cuts by the US Fed further dent sentiment surrounding the USD.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, is seen extending the overnight pullback from the vicinity of its highest level since early August, touched last week, and drifts lower for the second straight day. The index slides further below the 99.00 mark during the Asian session on Wednesday and seems poised to decline further.
The USD's underperformance comes on top of the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs two more times this year, in October and December. Furthermore, concerns that a prolonged US government shutdown would affect the economic performance turned out to be another factor undermining the buck. In fact, a Republican-backed stopgap funding bill to end the US government closure fell short of the votes needed for passage in the Senate on Tuesday.
This means that the US shutdown, which started on October 1, will extend into a third week, with no resolution in sight. Adding to this, a further escalation of the US-China trade war contributes to denting sentiment around the USD. US President Donald Trump threatened on Tuesday to terminate trade with China in cooking oil and other products in response to the latter's decision not to purchase US soybeans. China also announced new special port fees for US ships arriving in Chinese ports.
Furthermore, a strong USD/CNY reference rate fixing by the People's Bank of China (PBOC) prompts intraday USD selling. The Greenback is currently placed near the lower boundary of a one-week-old range, which, if broken decisively, should pave the way for deeper losses. Given that important US macro releases have been delayed due to the government shutdown, traders will take cues from speeches by influential FOMC members to grab short-term opportunities later during the US session.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, is seen extending the overnight pullback from the vicinity of its highest level since early August, touched last week, and drifts lower for the second straight day. The index slides further below the 99.00 mark during the Asian session on Wednesday and seems poised to decline further.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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