U.S. dollar gains, tracks rise in Treasury yields
The U.S. dollar advanced for a second straight session on Monday, bolstered by the rise in Treasury yields ahead of a slew of Federal Reserve speakers this week who could affirm expectations of the start of asset purchase reduction before the end of the year.
U.S. benchmark 10-year Treasury yields hit a three-month high of $1.516% on Monday.
Fed officials, including one influential board member, on Monday tied reduction in the Fed’s monthly bond purchases to continued job growth, with a September employment report now a potential trigger for the central bank’s bond “taper.”
Fed Chair Jerome Powell, who will join Treasury Secretary Janet Yellen, speaks before Congress on Tuesday.
The dollar index , which measures the U.S. currency against six major rivals, rose 0.1% to 93.37.
The greenback also extended gains after data showed new orders and shipments of key U.S.-made capital goods increased solidly in August, rising 0.5% in August amid strong demand for computers and electronic products.
But the market has been more focused on the U.S. Treasury market.
U.S. yields climbed to their highest since late June in anticipation of tighter monetary policy after the Fed announced last week it may start tapering stimulus as soon as November and flagged interest rate increases may follow sooner than expected.
The euro slipped 0.1% against the dollar to $1.1698, largely ignoring developments in German elections over the weekend, with the Social Democrats projected to narrowly defeat the CDU/CSU conservative bloc.
The dollar rose 0.3% versus the yen to 110.99 yen , after earlier rising to a nearly three-month high. It gained 0.2% versus the Swiss franc to 0.9259 francs .
Reference: CNBC
Thai
Eng