Forex- U.S. Dollar Rises as Bond Yields Jump By

© Reuters. The U.S. dollar was a touch higher on Friday. – The dollar was higher on Friday as the yield on U.S. Treasury notes rose to February levels and interest rate expectations offset trade war worries.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% to 89.88 by 5:13 AM ET (9:13 GMT).

U.S. bond yields crept back up on Friday, with the note climbing to its highest level since September 2008, at 2.437. The yield on the Treasury note rose to 2.916.

Prices fall as bond yields rise. A spike in U.S. Treasury bond yields in February led to a steep decline in equity markets, as investors flocked to the dollar in anticipation that inflation could lead to an increase in interest rate hikes by the Federal Reserve.

The dollar has been weighed down in recent months by U.S. President Donald Trump’s trade policies. China’s ambassador to the U.S. announced on Friday that if the White House continues to initiate a trade war, China would retaliate.

The dollar gained ground against the yen, with rising 0.23% to 107.60. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

The pound was lower amid dovish comments from Bank of England Governor Mark Carney, as investors grow uncertain of a rate hike in May. fell 0.25% to 1.4052.

The euro was down, with falling 0.30% to 1.2308 as investors worry that the euro zone’s economy is rebounding and the European Central Bank could wait to tighten monetary policy.

Elsewhere, the Australian dollar was lower, with down 0.44% to 0.7694 while decreased 0.69% to 0.7221.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

error: Content is protected !!