The dollar jumped one percent against a basket of major currencies on Tuesday and recovered from seven-month lows against the safe-haven yen and euro as riskier assets got a boost from an interest rate cut by the Chinese central bank.
U.S. single-family home prices rose a tad faster from a year ago in June, suggesting resilience in the housing sector as the Federal Reserve has stuck to a near-zero interest rate policy, a closely watched survey said on Tuesday.
China's central bank cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, ratcheting up support for a stuttering economy and a plunging stock market that has sent shockwaves around the globe.
In the upcoming October issue of Modern Trader, numerous analysts discuss their thoughts on a September rate increase by the Federal Reserve. The prevailing wisdom was that the Fed would finally pull the trigger at the upcoming September FOMC meeting, but there were several outliers who though the Fed would wait.
Investors in U.S. stocks have been arguing that a 10% decline of the S&P 500 was long overdue and a missing link of a healthy market. The benchmark index hasn't had a by-the-book correction in about four years.
The euro and yen climbed to a seventh-month peak against the dollar on Monday as investors, worried about the slowdown in China, reversed riskier bets in so-called "carry trades" and bought back the low-interest rate currencies used to fund those assets.