March 21, 2023

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The dollar continues to rise with higher yields

The dollar continues to rise with higher yields

Reports of rising inflation are opening up investors' appetite for the dollar

© Reuters
Reports of rising inflation are opening up investors’ appetite for the dollar

The dollar saw a significant rise and returned to its highest level in a year, reaching just last week, the economic slowdown in China and the rise in US Treasury yields, which increased the appetite for the dollar, making the Japanese yen one of the most important currencies to fall sharply.

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Key data released over the weekend highlights the potential for this Inflation will increase Global markets slower, higher inflation data released in New Zealand and Bank of England reports Direction for tightening monetary policy Growth in China has slowed.

Investors chose to translate this data into dollars in exchange for giving up the currencies of countries that import goods such as Japan.

Ravi Boydjian, Investment Analyst at XM Brokerage The treasury yields The impact of weak GDP numbers in China has boosted demand for the US dollar and other currencies, which today are considered a safe haven.

The dollar index was up 0.1 percent at 94.05, nearing last week’s high of 94.563, the highest since September 2020.

As for the yen, it is nearing a new low, the lowest in three years, with the dollar falling 0.1 percent against the dollar in recent trade, hitting 114.36 yen, close to Friday’s level of 114.47, the currency previously seen by the Japanese in October 2018.

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The New Zealand dollar rose nearly 0.5 percent to a one-month high of $ 0.7105, before easing by almost 0.2 per cent to $ 0.7056 after a quarterly inflation reading of the New Zealand dollar.

To retreat Sterling pound Policymakers said they needed to “act” after higher energy prices raised inflation, despite comments that the UK governor Andrew Bailey would tighten monetary policy over the weekend, from 0.1 per cent to $ 1.3735.

Data showed that the Chinese economy grew at a slower pace in the third quarter than usual, with industrial production declining due to energy shortages, while oil prices rose more than one percent to peak in 2018. After the release of that data. In the cryptocurrency market, Bitcoin went close to a record high of $ 64,895. Its final price reached $ 60,956.