The dollar rose to one-and-a-half month highs against a basket of the other major currencies on Tuesday boosted by a more optimistic outlook for U.S. interest rate increases and prospects for fiscal stimulus from Washington.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, touched a high of 93.78, the most since August 17 and was at 93.53 by 03:39 AM ET (07:39 GMT).
The dollar was boosted after data on Monday showed that U.S. factory activity accelerated to an almost thirteen-and-a-half year high in September underscored expectations for a December rate hike by the Federal Reserve.
The dollar has risen in recent weeks as investors grow more optimistic about the prospect of higher interest rates and tax cuts that some expect to boost the U.S. economy.
Expectations that rates will rise help support the dollar by making U.S. assets more attractive to yield-seeking investors.
Swiss bank UBS (S:UBSG) could shed almost 30,000 workers in the years ahead due to technological advances in the banking industry, Chief Executive Sergio Ermotti said in a magazine interview.
Ermotti told Bloomberg Markets that “process-oriented” companies see scope to cut workforces in half through new technology but he believed the true number for banks was around half that.
“If you look at UBS, we employ a meaningful amount of people— almost 95,000, including contractors,” Ermotti said. “You can have 30 percent less, but the jobs are going to be much more interesting jobs, where the human content is crucial to the delivery of the service.”
Luxury electric vehicle maker Tesla Inc (O:TSLA) said on Monday its deliveries rose 4.5 percent in the third quarter from the prior-year period, but said “production bottlenecks” had left the company behind its planned ramp-up for the new Model 3 mass-market sedan.
Tesla said it delivered 26,150 vehicles in the third quarter, including 14,065 Model S vehicles and 11,865 Model X cars, up 17.7 percent from the second quarter of this year.
The Palo Alto, California-based company delivered just 220 Model 3 sedans and produced 260 during the quarter. In July, it began production of the Model 3, which starts at $35,000 – half the starting price of the Model S.
Tesla had said in its second-quarter financial report that it expects “to achieve a rate of 5,000 Model 3 vehicles per week by the end of 2017.” The automaker also said it expects at some point in 2018 to further ramp to a rate of “10,000 Model 3 vehicles per week,” and an annual production rate in excess of 500,000 vehicles.
By Nick Carey
The pound fell to the day’s lows against the euro on Tuesday after data showing that activity in the UK construction sector contracted for the first time in 13 months in September added to fears that the economy is losing momentum.
EUR/GBP was up 0.2% to 0.8854 by 04:52 AM ET (08:52 GMT) from around 0.8843 earlier.
Financial data firm Markit said its construction purchasing managers’ index fell to 48.1 in September from 51.1 in August, dropping below the 50-point threshold that separates expansion from contraction for the first time since August 2016.
Economists had expected a reading of 51.1.
It was the fastest decline in overall construction output since July 2016.
House building growth slowed to a six-month low, while civil engineering work decreased at its fastest pace since April 2013.
Construction firms suffered a drop in workloads due to “fragile confidence and subdued risk appetite” among clients, especially in the commercial building sector, the report said.
Uncertainty over the path to Brexit was also a factor in the slowdown.