- Fed’s dovish tone and weaker US data saw further dollar weakness
- Pick-up in China data tempers Fed’s global economic & financial development concerns
- The Fund’s USD I Class gained +0.52%
- Holdings in the Middle East and Russia performed well
The risk-on sentiment broadly continued in April although performance was somewhat tempered as market activity was once again dictated by central bank action and crude prices. We had the BoJ wrong-foot some investors by leaving its three key easing tools unchanged. The bank's inaction saw the yen continue its upward assault against the dollar, gaining ~5.6% over the month. Meanwhile, the Fed unsurprisingly left the funds rate unchanged, although it sounded slightly more upbeat about the risks of global economic and financial developments; after the recent pickup in economic data out of China. The broadly dovish tone saw the dollar weakness continue for the third consecutive month. Meanwhile, having surged to 1.93% ahead of the meeting, the yield on the 10-yr US Treasury closed at 1.83%; only 6bps higher.