SINGAPORE, March 31 ― The dollar tracked toward a second consecutive quarterly loss today, as investors see US interest rates close to peaking and expect the dollar's yield advantage is in decline.
The euro rose 0.5 per cent overnight after stronger-than-expected German inflation figures reinforced expectations that there are a few more rate increases left in the Euro zone. “The dollar is likely to be range-bound until the impact is a little clearer but if the re-pricing of the outlook for US rates sticks, it’s got a fair bit further to fall,” Societe Generale analysts said in a note.
Currency markets were in general steadier than stocks and did not reflect the wild volatility seen in bond trade, though the yen ― seen as a safe haven thanks to Japan's status as the world's biggest creditor ― is up 2.5 per cent for the month, its best March performance since 2008. The Australian dollar nudged 0.2 per cent higher to US$0.6721 and is close to testing its 200-day moving average. It is also about 1.3 per cent lower on the quarter.