TOKYO (Reuters) – The dollar hit a seven-month high against the yen on Thursday as a more orderly rise in U.S. Treasury yields backed a loan ahead of a speech by Federal Reserve Chairman Jerome Powell that could confirm the move for global bond and currency markets. .
The dollar also traded near a three-month high against the Swiss franc and continued to rallies against most currencies as a renewed sentiment in the Financial market as basis of feeling.
However, the greenback lost ground against its peers in Australia and New Zealand as traders expecting stronger global growth maintained stocks on commodity currencies.
Investors want to see if Powell expresses concern about recent volatile sales in Finance and whether there is any change in his assessment of the economy ahead of the next Fed meeting ending March 17 .
The dollar may extend gains against the yen as Treasury yields rise at a measured pace, but the greenback is likely to fall against major commodity export currencies. as more signs signal a reversal in global growth.
“The dollar’s performance will vary depending on the currency,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“Dollar / yen looks good due to output and Japan’s economy performing better than US, but as commodity prices rise, the dollar weakens against commodity currencies . ”
The dollar rose to 107.09 yen, the highest level since July last year.
The U.S. currency bought 0.9191 Swiss francs, near its highest level since November.
The British pound stood at $ 1.3955, while the euro traded at $ 1.2057, fostering a 0.24% loss from the previous session.
The Treasury’s 10-year benchmark yield was up 1.44,77%.
Chaotic sales in Finance since the beginning of the year came amid concerns that major government spending to support the global economy could rise in inflation and 10-year output rose to a high of 1.6140% last week.
The move was so rapid that global stock markets fell and the dollar defied most frontier currencies, but the greenback has since recovered as a chaotic sell-off. of Finance, for now at least.
The dollar index stood at 91.005 against a basket of six major currencies, continuing to gain 0.32% from Wednesday.
The Australian dollar, which is often traded as a surrogate for global growth as it is closely linked to commodities, recovered from an early loss and rose to $ 0.7799.
The dollar in New Zealand, another commodity currency that was closely monitored, also fell slightly.
Traders said the Aussie and the kiwi are likely to continue to rise as both economies recover strongly from the COVID-19 pandemic and both will benefit from an acceleration in global trade.
In the cryptocurrency market, bitcoin fell 1.49% to $ 49,647, while competitive digital currency ether fell 0.65% to $ 1,557.
Bitcoin has risen 78% so far this year as it gains more acceptance in the financial services industry, but the U.S. financial regulator is likely to start working on guidelines for digital assets, which could increase scrutiny of cryptocurrencies.
Reciting with Stanley White; Edited by Richard Pullin, Ana Nicolaci da Costa & Shri Navaratnam