The US dollar has increased on Friday driven by higher yields of US Treasuries and forecast upward revision of the interest rate.
According to the reports, 2-year US Treasuries yields rose to 2.437%, which is the peak observed since September 2008, while yields of 10-year bonds moved up to 2.916%.
The yields of US state bonds are inversely related to the price. The February hikes resulted in a slump in the stock exchanges – investors rushed to buy dollars expecting higher inflation to lead to earlier interest rate revision.
The US Dollar index reached 89,83 today.
At the same time, the greenback has been lately depressed by Trump’s policy. According to the news reports, Beijing stated that China would be ready to accept the challenge if Washington kept unleashing trade war.
European currency has lost grounds against the US dollar to 1.2306. Its weakening is said to be related to investors’ fears about too small recovery of the euro-area for tightening of the monetary policy.
The sterling rate dropped due to the statement of BOE’s Chairman regarding soft monetary policy. The doubts about the May interest rate increase is strengthening further in the market. As a result, the GBP-USD pair was seen at 1.4073.
The Australian and New Zealand currencies slackened to 0.7695 and 0.7224 respectively.