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FOREX-Dollar falls as risk-on move boosts stocks

* Dollar index slips

* Yen strongest in a week

* Nasdaq hits all-time high

* Graphic: World FX rates in 2020 (New throughout)

NEW YORK, Aug 17 (Reuters) - The dollar traded lower on Monday as a risk-on moved tamped down appetite for the safe-haven asset and bolstered U.S. stocks, sending the Nasdaq to an all-time high.

In addition to the Nasdaq index high, the S&P 500 index just missed its own record level, with both indexes lifted by Nvidia and other technology stocks.

The risk-on move in stocks helped drive the dollar index which was 0.21% lower on the day to trade at 92.817. The safe-haven Japanese yen however was exempt from the move, last up 0.56% to a one-week high of 105.98, as were Treasury yields.

“What you’ve seen today is a continuation of a dollar risk-on move where the dollar has been selling off,” said Chuck Tomes, portfolio manager at Manulife Investment Management, noting that the move was exacerbated by thin trading volume.

The afternoon losses added to the dollar’s slight move lower on Monday morning after weak results from a regional manufacturing survey added to doubts that the U.S. recovery is on shaky grounds.

The New York Fed’s Empire State business conditions index fell to 3.7 in August versus 17.2 in July, and far lower than the 15 points forecast by a Reuters survey of economists. The reading indicates a slowdown in the manufacturing sector though the results were partially offset by strong housing data released earlier on Monday.

U.S. homebuilder confidence rose for a third straight month in August to match a record high as record-low interest rates spur a surge in customer traffic, especially in suburban markets that are growing in appeal as a result of the coronavirus pandemic.

Going forward, investors will be focused this week on the release of minutes of the U.S. Federal Reserve’s last policy meeting and the U.S. Democratic Party’s nominating convention.

“The U.S. dollar nursed a weak bias with attention on U.S. politics and Fed policy,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Markets are looking to the Fed minutes, due to be released on Wednesday, for any clues about an anticipated shift in the policy outlook. Speculation is rife the U.S. central bank will adopt an average inflation target, which would seek to push inflation above 2% for some time to make up for the years it has run below. (Reporting by Kate Duguid in New York and Ritvik Carvalho in London Editing by Paul Simao and Tom Brown)