USD Strengthens Back! What Happened? - - Financial Market Media No. 1 in the World USD Strengthens Back! What Happened? USD Strengthens Back! What Happened?

September 8, 2021

USD Strengthens Back! What Happened?

 The greenback hovered around a one -week high against most major currencies, lifted by higher U.S. treasury yields and investor vigilance ahead of policy announcements by European and Canadian central banks.

Against most major currencies, the dollar index surged higher around 92.50 during the Asian session.

10 -year U.S. bond yields rose past their highest level since August at 1.38%, prompting the king of the U.S. dollar to gain as well.

The rise of the USD was also supported by a decline in global stock markets weighed down by concerns over economic growth due to the growing Delta virus outbreak.

Meanwhile, the euro depreciated lower but remained above 1.18000 against the greenback dollar, as market focus now shifts to the ECB policy meeting tomorrow.

The pound plunged back below 1.3800 due to the strengthening USD, despite hawkish comments from Bank of England (BOE) policymaker Michael Saunders who said the central bank would need to raise interest rates next year if growth continues and inflation picks up.

On the other hand, the Aussie dollar also declined despite the Australian Central Bank (RBA) decision yesterday which saw plans for a reduction in fixed bond purchases continue, but extended for a longer period.

Kiwis, meanwhile, recorded a modest decline as New Zealand still struggled to step up vaccination programs to curb the country's wider spread of coronavirus.

The Canadian dollar weakened lower following the surge in the US dollar, with the focus now on the Central Bank of Canada (BOC) policy meeting tonight.