Advertisement
Advertisement
Advertisement
Advertisement
Dollar looms over its rival currencies as it reaches multi-year high

Dollar looms over its rival currencies as it reaches multi-year high

Dollar looms over its rival currencies as it reaches multi-year high

Dollar increases gradually against other currencies

Advertisement
  • Markets are on high alert for any signs of intervention by central banks.
  • The U.S. dollar index rose 0.05% to 113.04, following an almost 1% increase overnight.
  • The yen has been on a losing streak for 11 consecutive sessions.
Advertisement

The dollar loomed over its major rivals on Thursday, as Treasury yields reached multi-year highs and the yen plummeted to a new 32-year low, keeping markets on high alert for any signs of intervention.

This week’s scorching inflation data from the United Kingdom, Canada, and New Zealand demonstrated that central banks around the world are far from taming decades-high inflation, even if it means stifling growth, stoking fears of a recession, and fueling demand for the dollar as a safe haven.

Against the strengthening dollar, the yen reached a new 32-year low. In early Asia trade, the pound, the euro, and the antipodean currencies all experienced losses.

The U.S. dollar index rose 0.05% to 113.04, following an almost 1% increase overnight.

The yield on the benchmark 10-year U.S. Treasury rose to 4.148%, its highest level since mid-2008, while the yield on the two-year Treasury reached a 15-year high of 4.58%.

“You still can’t write off the U.S. dollar, I’m still not convinced that we’ve necessarily seen the highs for this cycle,” said Ray Attrill, head of FX strategy at National Australia Bank (NAB).

Advertisement

The Japanese yen reached a new low of 149.96 per dollar and last traded for 149.95.

The yen has been on a losing streak for 11 consecutive sessions as of Wednesday’s close, and for the past six sessions, it has reached new 32-year lows.

“Looks like it’s the rabbit caught in the headlights at the moment,” said NAB’s Attrill.

“Given that Treasury yields have moved decisively above 4%, were it not for the threat of intervention, then I think dollar/yen would already be trading north of 150.”

Japan intervened in the foreign exchange market to purchase yen last month for the first time since 1998 in an attempt to stabilize the currency.

Aside from this, sterling fell 0.2% to $1.12005, despite the fact that data released on Wednesday revealed that the largest increase in food prices since 1980 returned British inflation to double digits last month.

Advertisement

The inflation figures continue a turbulent week for the pound after Jeremy Hunt scrapped Prime Minister Liz Truss’s economic plan and reduced her massive energy subsidy earlier this week.

The euro fell 0.1% to reach $0.9762.

The Australian dollar fell 0.2% to $0.6258, while the New Zealand dollar fell 0.36% to $0.5656.

Data released on Thursday indicated that Australia’s unemployment rate remained near five-decade lows at 3.5% in September, though there was a possible indication of a thawing in the extremely tight labor market as employment rose by much less than anticipated.

Also Read

The rising dollar causes suffering around the world
The rising dollar causes suffering around the world

Financial hardship is being made worse by the strong dollar. Professor Eswar...

Advertisement
Advertisement
Read More News On

Catch all the Business News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story