PT Solid Gold Berjangka | Dollar Ascendant as Surging US Yields Spur Demand for Safe Havens
USD GBP/USD EUR/USD USD/JPY, AUD/USD, SOLID GOLD BERJANGKA SOLID GROUP SG BERJANGKA PT SGB
Solid Gold Berjangka | The dollar soared to a two-week high against major peers on Thursday as a rout in US treasuries improved the currency’s attractiveness, both due to rising U.S. yields and demand for safe-haven assets.
The dollar pushed to the top of two weeks against the euro and extended a rebound from more than two-month lows to the pound, following a two-day jump of 15 basis points above 4.6% for long-term government bond yields after several poorly received bond auctions with more robust US economic data.
The bond market rout has surprised investors, with stocks sliding sharply this week, spurring a rush to the safest assets globally.
The dollar index, which measures the currency against six major peers, including the Euro, Sterling and Japanese yen, closed 0.5 percent higher on Thursday, following a 14 percent advance in the previous session, its highest since 105.15.
The euro fell to 1.0796 sliped14 for the first time since March 1.2696 and Sterling continued to retreat after reaching 1.2801 retreat on Tuesday for the first time since March 21.
However, the yen rose from a four-week low of 157.715 per dollar overnight to its last trading at 157.505.
Japan’s currency has fallen steadily this month and is returning towards a 34-year-old trough of 160.245, spurring a rapid rebound that market officials strongly suspect is a two-round intervention by the Treasury and the Bank of Japan selling dollars.
Expectations for a Fed rate cut this year have shrunk amid signs of sticky inflation, most recently a surprising rise in consumer sentiment in Tuesday’s data.
Revised U.S. GDP figures are due later in the day, followed by the release of this week’s major macro event, the Personal Consumption Expenditure (PCE) Price Index, on Friday.
Source: Reuters