By Tom Westbrook and Rae Wee SINGAPORE, July 4 (Reuters) – The greenback stored trade-sensitive currencies pinned close to multi-year lows on Monday and the euro was below strain as traders sought security on account of worries about slowing world growth. Data on Friday confirmed euro zone inflation surging to a different file, including to the case for the European Central Bank to hike rates of interest this month. While the frequent forex was regular at $1.0435 on Monday, it’s barely above May’s five-year trough of $1.0349 and highlights the market’s choice for {dollars} as gloom clouds the outlook. The Australian and New Zealand {dollars} hit two-year lows on Friday and weren’t removed from these ranges early within the Asia session, with the Aussie down 0.3% to $0.6796, after falling to as low as $0.6764 on Friday. The kiwi slipped 0.1% to $0.6197. Trade is prone to be lightened forward of the Independence Day vacation within the United States. Safety flows are likely to help the buck, particularly on the expense of commerce and export-driven currencies, when the world economic system is weak. This has stored the greenback elevated even as growth fears have tempered U.S. charge hike expectations. The U.S. greenback index stood at 105.100, not far under final month’s two-decade excessive of 105.790. The Atlanta Federal Reserve’s much-watched GDP Now forecast has slid to an annualised -2.1% for the second quarter, implying the nation was already in a technical recession. “The Aussie and different commodity currencies and even euro and sterling will doubtless decline much more into the week, given markets at the moment are super-focused on the danger of a pointy slowdown within the world economic system,” stated Carol Kong, a forex strategist on the Commonwealth Bank of Australia in Sydney. Sterling hit a two-week low of $1.1976 on Friday and final purchased $1.2095. Ahead this week, Australia’ central financial institution meets on Tuesday and traders are additionally awaiting the publication of minutes from final month’s Federal Reserve assembly on Wednesday, and U.S. employment information on Friday. Markets have priced in a 40 foundation level (bp) hike in Australia, so the Aussie might not catch a lot of a lift if that’s delivered. Minutes of the Fed’s June coverage assembly on Wednesday are virtually sure to sound hawkish given the committee selected to hike charges by a super-sized 75 bps. The market is pricing in round an 85% likelihood of one other hike of 75 foundation factors this month and charges at 3.25-3.5% by yr finish – earlier than cuts in 2023. Against Asian currencies the greenback held Friday positive factors that lifted it to its strongest ranges in years on the Thai baht , Indonesian rupiah and Singapore greenback . The Chinese yuan started the onshore session regular at 6.7021 per greenback. ======================================================== Currency bid costs at 0135 GMT Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.0433 $1.0427 +0.04% -8.24% +1.0444 +1.0418 Dollar/Yen 134.8100 135.2700 -0.34% +0.00% +135.2950 +134.8150 Euro/Yen Dollar/Swiss 0.9584 0.9596 -0.05% +5.15% +0.9596 +0.9583 Sterling/Dollar 1.2093 1.2095 +0.00% -10.57% +1.2119 +1.2095 Dollar/Canadian 1.2900 1.2883 +0.16% +2.05% +1.2902 +1.2876 Aussie/Dollar 0.6796 0.6817 -0.31% -6.51% +0.6828 +0.6796 NZ 0.6197 0.6205 -0.13% -9.46% +0.6217 +0.6197 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market data from BOJ (Reporting by Rae Wee; Writing and extra reporting by Tom Westbrook; Editing by Sonali Desai)
