September 28, 2021

USD Rises, Pushes Other Major Currencies Lower

 Rising U.S. bond yields continued to drive the monarch of the U.S. dollar to a more than five -week high against its major rivals, particularly the yen which fell to a three -month low.

U.S. treasury yields have soared since late last week, after the Federal Reserve (Fed) said it would likely start reducing asset purchases as soon as November and signaled an interest rate hike would follow.

Against a basket of major currencies, the dollar index that measures the strength of the greenback dollar traded higher at 93.56.

The yen was down about 0.3% against the US dollar, trading weakly around 111.30 in the European session.

Investors do not seem surprised by the announcement by Japanese Prime Minister Yoshihide Suga that the implementation of the state of emergency will end on September 30 as it has been reported since last week.

The pound returned to decline following the strengthening of the US dollar, failing to maintain its gains following market optimism for an interest rate hike by the Bank of England (BOE) which may be faster than expected.

The euro slipped to a nearly one -month low as the greenback continued to rise higher.

On the other hand, the Aussie dollar and kiwi were also impressed by the strength of the currency king, although Australian retail sales data released during the Asian session showed better -than -expected readings.

The Canadian dollar retreated from a two -week high following the USD's rebound, but the commodity currency remained strong supported by soaring world crude oil prices.