Investors Cautious After Last Week’s Selloff
The dollar was higher on Monday against its primary trading partners as investors remained committed to the safe-haven currency after a massive global equity selloff at the end of last week. The selloff was prompted by concerns about geopolitical unrest, the continuing trade war between China and the United States and shaky corporate earnings reports. The dollar traded near a ten-week high while the dollar index gained 0.11 percent by the mid-afternoon on Monday. The dollar index was trading at 96.47 .DXY as of 1:59 p.m. HK/SIN after hitting a high of 96.860 on Friday, its highest level since mid-August. The rising dollar has been cited as a reason for the global equity selloff, with the widening gap between the dollar and foreign currencies making it difficult for U.S. companies to sell their products overseas. Investors remain concerned about the strong dollar despite a run of solid earnings reports and stable profit growth.
The greenback gained 0.04 percent against the yen to trade at 111.93. It was up 0.02 percent against the British pound, and it rose 0.04 percent against the Canadian dollar. Only the Australian dollar bucked the trend, trading 0.06 percent higher against the dollar on Monday.
Oil prices were broadly lower on Monday, with U.S. WTI futures down 0.37 percent to $67.34 per barrel and Brent crude futures down 0.32 percent to $77.37 per barrel. The commodity was under pressure after last week’s selloff prompted investors to worry that an economic slowdown would reduce demand and constrict oil prices further. Also pressuring oil markets is the upcoming implementation of U.S. sanctions against Iranian crude exports which are set to start next week.
Gold prices were flat on Monday, trading at $1,235.90 per ounce.