hp for ($i=0; $i]+>!is", "", $news['Contains'][$i]['Body']); ?>

Dollar extends gains in Asia as Fed heads for rate hike

Dollar extends gains in Asia as Fed heads for rate hike

Dollar extends gains in Asia as Fed heads for rate hike

North Korea who has been conducting ballistic missile tests in the past month recently fired a missile over Japan's Northern waters that sent not just the Asian market but also Global stocks trading lower during the past couple of weeks.

The dollar index against a basket of six major currencies was effectively flat at 92.169 after slipping about 0.4 percent overnight.

The MSCI All-Country World Index increased 0.3% to the highest on record.

The euro barely moved at $1.1943 and on track to end the week 0.8 percent lower.

The Standard & Poor's 500 index rose 1 point to 2,508.

In fixed income, the yield on the benchmark government bond due in 2026 was down 1.5 basis points to 8.42 percent.

Ahead of the US Federal Reserve's board meeting on Wednesday night, markets across the board were trading in relatively tight ranges.

The Fed also reduced its benchmark interest rate to zero, and only began raising it in December 2015, seven years after the crisis.

Image Zoom             
                                                            |By Sinead Carew
Image Zoom |By Sinead Carew

The Federal Reserve will hold interest rates at 1.0 to 1.25 percent, while also beginning to sell off a almost $4.5 trillion portfolio of bonds and other assets next month, The Wall Street Journal reports.

"On the surface, the hurricanes could make it [the Fed] a little more hawkish ... over the next year, but in the near term, because the economic data are quite muddled by the storms, ... it probably warrants more dovishness, meaning the Fed delays the next rate increase", said Sal Guatieri, a senior economist with BMO, in a phone interview.

The Fed had announced previously that it meant to gradually minimize its portfolio of bonds and other assets, acquired during the financial crisis. It is conceivable, however, that in the near future, the Fed could be forced to cram more rate hikes in a shorter time frame-something it wants to avoid.

Stateside, stocks closed higher on Tuesday.

The kiwi jumped half a U.S. cent after the 1News Colmar Brunton poll yesterday showed the National Party leapfrogged its rival Labour Party, with 46 percent support to 37 percent. Second-quarter GDP was revised up to 3.0 percent. Still, no one is sure how the financial markets will respond over the long run. "It could hurt financials and the overall market might not like the uncertainty", he added. Traders also bid up shares in other insurers. Hyundai Motors, on the other hand, gained 1.43%.

Energy stocks led the way with a 0.7% gain while consumer staples and utilities were the laggards, down 0.9% and 0.8%, respectively. NetApp climbed $1.25, or 3.1 percent, to $41.88. The Nasdaq slipped 5 points to 6,456. It rose to 81.43 yen from 81.24 yen and was at 4.7978 yuan from 4.7954 yuan.

The report followed North Korean leader Kim Jong Un's statement on Friday that Pyongyang will consider the "highest level of hard-line countermeasure in history" against the United States in response to U.S. President Donald Trump's threat to destroy the isolated nation. Trump's remarks came during his debut speech to the U.N. General Assembly. SK Hynix was up 2.73 percent.

New Lady Gaga: Five Foot Two Trailer Gets More Personal Than Ever
Live Nation said the second leg of Gaga's North American tour is now still set to kick off in November as previously announced. Lady Gaga also mentioned the reason behind the cancellation of the rock show on Friday as "genuine".

WA Toys R Us stores remain open despite debt woes
Various lenders including JPMorgan have already committed as much as $3bn already to financing the attempted company turn around. The company said it will continue to operate as usual its approximately 1,600 Toy R Us and Babies R Us stores around the world.

State Legislators pass bill to make California a 'sanctuary state'
But they will be prohibited from from transferring immigrants to federal authorities if they have committed only minor offenses. The compromise moved the California Police Chiefs Association's position on the bill opposed to neutral.

Related news