U.S. dollar on track for best month in 4-1/2 years; payrolls in focus
The dollar gained on Wednesday, headed for its biggest monthly rise since November 2016, supported overall by a surprisingly hawkish shift in the U.S. Federal Reserve’s rates outlook at a meeting early this month, as well as concern over the spread of the Delta coronavirus variant.
The dollar has gained about 2.6% against a basket of currencies this month, partly in the wake of the Fed stance. Traders are looking to Friday’s U.S. nonfarm payrolls report for a likely confirmation of a shift in monetary policy.
The greenback also edged higher after data showed U.S. private payrolls increased more than expected in June by 692,000 jobs. Data for May though was revised lower to show 886,000 jobs added instead of the initially reported 978,000. Economists polled by Reuters had forecast private payrolls would increase by 600,000 jobs.
In midmorning trading, the dollar index, which measures the greenback against a basket of six major currencies, rose 0.3% % to 92.319 after earlier touching a more than one-week high of 92.324.
For the first half of the year, the dollar climbed 2.5%, the best half-year performance since August 2019.
The euro was down 0.2% against the dollar at $1.1896. Against the yen, the dollar was firmer at 110.71 yen.
Risk-sensitive and commodity-exposed currencies such as Australian and New Zealand dollars nursed losses against the greenback. The Aussie and New Zealand dollars were down 0.2% at US$0.7502 and US$0.6983 respectively.
10-year Treasury yield dips to 1.45% ahead of economic data
U.S. Treasury yields fell Wednesday morning despite stronger employment numbers for the month of June released by ADP.
The yield on the benchmark 10-year Treasury note fell 2.46 basis points to 1.456% at 4:05 p.m. EST. The yield on the 30-year Treasury bond dipped 1.7 basis points to 2.08%. Yields move inversely to prices.
Reference: CNBC
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