Dollar strengthens amid higher U.S. yield on lower mantra for longer

TOKYO (Reuters) – U.S. dollar strengthens U.S. dollar again on Friday, backed by higher Treasury yields and falling stock markets, while investors continued to push back pressure the Federal Reserve against expectation of any early interest rate hike.

PHOTO FILE: U.S. dollar notes can be seen in this November 7, 2016. Photo REUTERS / Dado Ruvic / Photo / Photo file

The dollar index added 0.1%, extending a 0.5% jump from that Thursday in two weeks.

U.S. 10-year benchmark yields climbed to a year-over-year high of 1.754% before heading to 1.715%, followed by lower Wall Street Asian stocks.

The Federal Open Market Committee (FOMC) this week pledged to go ahead with aggressive monetary stimulus, saying a near-term spike in inflation would be a temporary confirmation among their projections for the strongest U.S. economic growth. in nearly 40 years.

The next focus for the money market will be the Bank of Japan policy decision on Friday, along with the results of a comprehensive policy review.

“After a little monitoring of the swamp,” bond investors decided that the Fed is not (setting) any challenges or discomfort for a UST yield with a longer date to push more height, ”Rodrigo Catril, a senior FX specialist at the National Bank of Australia, wrote in a messenger note.

“The USD got back mojo.”

The greenback gained 0.1% to 109.04 yen, adding to small overnight gains.

The yen received some support from Nikkei ‘s report Thursday that the BOJ was expected to extend a slight bond in which it will allow long – term flat rates to move around their 0% target.

The euro slipped 0.1% to $ 1.1908, extending a 0.5% dip on Thursday.

While AstraZeneca vaccines are ready to resume in Germany, France and other European countries, the region ‘s growth outlook was reduced as Paris entered a one – month lockout.

The British pound fell 0.2% to $ 1.3903 after weakening 0.3% a day earlier, as the Bank of England warned that the outlook for Britain was not clear, reducing some profitability for the bank to show a vision. more confident.

In the cryptocurrency market, bitcoin weakened to around $ 56,703 in early Asian trading, sawing after pushing to $ 60,000 again overnight.

It had climbed to a very high of $ 61,781.83 on Saturday, after more than doubling since the beginning of the year.

“Bitcoin is a moving trade and it feels like it could go a lot further,” said Edward Moya, OANDA’s senior New York-based market analyst, online FX broker.

“Is it a bubble? There is. But it can go up to $ 100,000 before it goes down. ”

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Cash offer prices at 116 GMT

RIC Description Last US Close Pct Change YTD Pct High Bid Low Bid

Previous change

Session

Euro / Dollar $ 1.1906 $ 1.1916 -0.08% -2.55% +1.1921 +1.1904

Dollar / Yen 109.0650 108.9100 + 0.11% + 5.56% +109.0920 +108.9300

Euro / Yen 129.85 129.76 + 0.07% + 2.31% +129.9200 +129.7700

Dollar / Switzerland 0.9282 0.9274 + 0.09% + 4.92% +0.9283 +0.9273

Sterling / Dollar 1.3901 1.3932 -0.19% + 1.79% +1.3931 +1.3900

Dollar / Canada 1.2502 1.2486 + 0.14% -1.81% +1.2505 +1.2484

Aussie / Dollar 0.7734 0.7762 -0.32% + 0.57% +0.7762 +0.7736

NZ 0.7154 0.7168 -0.17% -0.35% +0.7171 +0.7155

Dollars / Dollars

All spots

Spotan Tokyo

Europe spots

Vulnerability

Tokyo Forex market information from BOJ

Reciting with Kevin Buckland; edited by Richard Pullin

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