Written by Stanley White and Sagarika Jaisinghani
TOKYO (Reuters) – The dollar soared near its three-month high on Monday after the US Senate approval of a bumper stimulus bill triggered further sell-offs in the bond market, while the currencies of major commodity exporters tumbled as part of broader trade involving At risk. Lost momentum.
The price settled at 92.073 against a basket of six major currencies, up 0.17% and close to a three-month high of 92.201 struck on Friday.
The Senate passed a $ 1.9 trillion relief plan from COVID-19, a day after the startling US jobs report sent the dollar to its highest level since November 2020.
“There is demand for the dollar because the United States is the world’s most serviced economy, and once the reopening narrative goes in full swing it will save the icing on the cake,” said Stephen Innes, Axi’s chief global market strategist.
As investors increased their bets on a faster economic recovery this year, concerns about rising inflation led to higher bond yields despite assurances from central banks including the US Federal Reserve that monetary policy would remain loose.
The yield on record 10-year US Treasury notes hovered near a one-year high on Monday, while US Nasdaq futures fell about 1% and European stock index futures trimmed gains with the sell-off also spreading to other risky assets. [MKTS/GLOB]
Speculators reduced net short dollar deals in the last week to $ 27.80 billion, the smallest short position since December 15th and indicates that dollar bears are giving up bets on the dollar. [IMM/FX]
The dollar settled near its highest level in one month against the British pound, which was trading at $ 1.3819, and the highest level in three months against the euro, which settled at $ 1.1904.
Against the low-yielding yen, the dollar settled at 108.39 yen, after reaching a nine-month high of 108.645 on Friday.
“The more significant decline from other central banks of their bond markets over the past week than the Fed provided has given the reason for the dollar’s expansion to move,” Ennis said.
It fell to its lowest level in more than two months, as the dollar and US yields rebounded, prompting many investors to reassess the outlook for the yuan, which the market expected would be stronger in the remainder of this year. [CNY/]
The Australian dollar rose 0.2 percent to $ 0.7696, but was far from a session high of $ 0.77230. The New Zealand dollar is down about 0.1%, after earlier rising 0.4% to $ 0.719. Antipodean coins were in demand due to their links to global commodity trade.
The greenback slipped 0.38% against the Norwegian krone to 8.5283 and slightly weakened to CAD 1.2637 as traders bought the currencies of oil-exporting countries.
Some traders said a jump in futures contracts above $ 70 a barrel for the first time in more than a year triggered a wave of bidding for commodity currencies in early Asian trade.
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Currency display rates at 0430 GMT
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
EUR / USD 1.1904 $ 1.1908 -0.05% -2.59% +1.1932 +1.1899
USD / JPY 108.3950 108.2600 + 0.12% + 4.93% + 108.4850 +108.3450
EUR / JPY 129.03 129.09 -0.05% + 1.66% + 129.3900 + 128.9800
USD / CHF 0.9318 0.9311 + 0.08% + 5.33% + 0.9319 +0.9299
GBP / USD 1.3821 1.3831 -0.09% + 1.15% +1.3864 +1.3810
USD / CAD 1.2654 1.2649 + 0.05% -0.62% +1.2663 +1.2624
AUD / USD 0.7696 0.7680 + 0.21% + 0.05% + 0.7722 +0.7686
NZ 0.7158 0.7165 -0.10% -0.32% +0.7190 +0.7152
Dollar / dollar
Locations in Tokyo
Spots in Europe
Twists and turns
Tokyo Forex Market Information from the Bank of Japan