[ad_1]
By Kevin Buckland
TOKYO (Reuters) – The greenback rose to a two-week excessive versus the yen on Wednesday, lifted by greater Treasury yields as world inflation worries flared anew.
The , which measures the foreign money in opposition to six main friends, together with Japan’s, rose 0.19% to 101.94, extending a 0.38% rally from Tuesday, when information confirmed euro-area shopper inflation hovering to a report.
The buck climbed 0.28% to 129.07 yen, and earlier touched 129.185 for the primary time since Might 18.
Benchmark 10-year Treasury yields touched 2.884% in a single day, the very best since Might 19.
The euro slipped 0.15% to $1.0718, persevering with its retreat from the more-than-one-month peak of $1.0787 hit on Monday after the European Central Financial institution shifted to a extra hawkish posture.
The greenback index swooned to a one-month low of 101.29 on Monday after pulling again from an almost two-decade excessive above 105 reached in mid-Might, as U.S. inflation and different financial indicators confirmed indicators of peaking amid the Federal Reserve’s aggressive coverage tightening.
Markets have priced half-point rate of interest rises for the Fed’s conferences this month and subsequent, in step with what policymakers have been signalling, however the outlook past that’s murky.
A intently watched month-to-month U.S. jobs report, due on Friday, could supply new clues.
“It is nonetheless too early to name a long-term DXY peak,” Westpac strategists wrote in a consumer be aware, referring to the greenback index.
“An aggressive 180bp in ECB fee hikes are priced by way of to end-2023, about the identical because the Fed, but it is exhausting to see the ECB transferring toe to toe.”
The greenback index may vary between 101 and 105 for “some time” earlier than its bull pattern resumed, they wrote.
[ad_2]
Source link