Dollar rises to 10-1/2-month peak, lifted by Treasury yield surge
The U.S. dollar surged to its highest in more than 10 months on Tuesday, tracking the rise in Treasury yields, as investors looked ahead to the Federal Reserve possibly reducing asset purchases in November and an interest rate hike likely to follow.
In afternoon trading in New York, the U.S. dollar index reached its highest level since early November and was last up 0.3% at 93.719.
The rise in yields accelerated after the U.S. central bank turned hawkish at last week’s monetary policy meeting, reinforcing the market view for a sooner-than-expected Fed taper.
10-year yield continues rapid climb, hits the highest since June
The benchmark 10-year U.S. Treasury yield rose again on Tuesday, trading at its highest levels since June and continuing a steady increase that began last week.
The yield on the benchmark 10-year Treasury note rose 6.2 basis points to 1.546% after hitting 1.567% earlier in the day. The yield on the 30-year Treasury bond added nearly 10 basis points, spiking to 2.094%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
TREASURIES-Yields ease back as 7-year note auction shows solid demand
Yields on two- and five-year notes reached their highest levels since the first quarter of 2020.
The euro was down 0.1% versus the dollar at $1.1681 . Earlier in the session, it hit a six-week low of $1.1668, after comments from U.S. Treasury Secretary Janet Yellen, saying that U.S. inflation at the end of the year would be closer to 4%, double the Fed target.
Sterling drops more than 1% amid U.S. yields surge, UK fuel crisis
By 1420 GMT the risk-sensitive pound had fallen 1.3% and traded as low as $1.3529, after touching its lowest since mid January. Versus the euro, it slid 1.2% to its lowest since July, at 86.40 pence.
Reference: CNBC
Thai
Eng