On Thursday, the safe-haven dollar was trading near a one-month low. Following the minutes of the Federal Reserve’s May meeting. Indicating the possibility of a pause in rate hikes after two more 50 bps increases in June and July risk appetite improved.
TOKYO (Reuters)
The dollar index, which measures the currency against six major peers, was little changed at 102.03. That maintaining around level following a brief bounce following the minutes on Wednesday.
However, the rally evaporated as the Asian trading day began, with analysts reporting few shocks in the minutes. Overnight, Wall Street surged, while long-term Treasury yields remained unchanged.
Raphael Bostic, President of the Atlanta Federal Reserve, had previously said earlier this week that a pause in September could be the appropriate course of action to examine the effects on the economy following two further 50-basis-point hikes in June and July.”
Mid-month, the dollar index reached a nearly two-decade high of over 105. Signals are aggressive Fed action is already hurting economic growth have caused traders to reduce tightening wagers, with Treasury yields also falling from multi-year highs.
The 10-year Treasury yield rose to 2.76 percent in Tokyo but has mainly stabilized around that level this week.
Mid-month, the dollar index reached a nearly two-decade high of over 105. The signal is aggressive Fed action is already hurting economic growth have caused traders to reduce tightening wagers, with Treasury yields also falling from multi-year highs.
The 10-year Treasury yield rose to 2.76 percent in Tokyo but has mainly stabilized around that level this week.
Source: Investing
Read more: Forex