DUSHANBE, July 20, 2015, Asia-Plus — Gold headed for the biggest single-day loss in almost two years and the dollar traded near a three-month high versus the euro as investors switch focus back to the timeline for higher US borrowing costs, Bloomberg reported on July 20.
Asian stocks reportedly fluctuated with Japan closed for a holiday.
Gold for immediate delivery slid 3.1 percent in Hong Kong, trading at a five-year low after sliding 1 percent Friday. The greenback was steady at US$1.0825 per euro after climbing the most since May versus the common currency last week. The Bloomberg Dollar Spot Index rose 0.1 per cent in a fourth rising day.
The MSCI Asia Pacific excluding Japan Index fluctuated, while Standard & Poor”s 500 Index futures were little changed.
The dollar is coming off its best week in two months after Federal Reserve chair Janet Yellen reaffirmed the outlook for rate hikes this year in the US and as concern over Greece and China”s stock rout receded. Commodity currencies are near multi year lows, with New Zealand projected to join Canada in cutting borrowing costs this week amid sliding commodity prices. Banks in Greece reopen Monday following their three-week shutdown.
The dollar reportedly strengthened against Asian emerging-market currencies, gaining at least 0.2 per cent versus the South Korean won and the Malaysian ringgit. The Bloomberg dollar gauge, which tracks the greenback against 10 major peers, jumped 1.6 percent last week as Greece accepted a bailout deal and mainland Chinese equities capped a second week of gains.
Gold”s biggest drop since October 2013 reportedly took it to US$1,099.05 an ounce, its lowest price since March 2010.
