HomeLatestU.S. dollar rises amid record-high yields

U.S. dollar rises amid record-high yields

NEW YORK, Sept. 27 (Xinhua) — The U.S. dollar firmed in late buying and selling on Wednesday, as U.S. Treasury bond yields continued to climb amid fears of a U.S. federal authorities shutdown.

The dollar index, which measures the dollar in opposition to six main friends, elevated 0.41 % to 106.6639 in late buying and selling.

“After rising for 10 consecutive weeks, the dollar index is on course to add one more weekly gain on top of that this week. There’s no fresh news behind its latest gains. Yet there has also been no macro reason for the dollar rally to end, apart from the fact it is getting a bit overstretched in the short-term outlook,” mentioned Fawad Razaqzada, market analyst at City Index and Forex.com.

Minneapolis Fed President Neil Kashkari famous on Wednesday that he is not sure if the Federal Reserve is restrictive sufficient and urged that one other charge hike is required.

U.S. Treasury yields have been principally up throughout the board, with the benchmark ten-year yield rising 5 foundation factors to 4.607 %, the very best stage in ten years.

The two-year yield tacked on 5.4 foundation factors to five.131 %, whereas the 30-year bond picked up 2.7 foundation factors to 4.723 %.

“In the near term, there is proactive reluctance to buy (Treasuries) particularly given the speed of the latest sell-off,” mentioned Ben Jeffrey, charges strategist at BMO Capital in New York. “There are definitely enough risks out there in terms of labor market growth and the economy, as well as the risk of a government shutdown that will eventually help to bring some demand and push rates lower.”

In late New York buying and selling, the euro was right down to 1.0508 U.S. {dollars} from 1.0566 {dollars} within the earlier session, and the British pound decreased to 1.2137 U.S. {dollars} from 1.2157 {dollars}.

The U.S. dollar purchased 149.5950 Japanese yen, greater than 149.0710 Japanese yen of the earlier session. The U.S. dollar rose to 0.9208 Swiss francs from 0.9152 Swiss francs, and it was right down to 1.3510 Canadian {dollars} from 1.3521 Canadian {dollars}. The U.S. dollar rose to 11.0471 Swedish krona from 11.0285 Swedish krona.

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