September 28, 2021

What's Up - US Dollar Makes 'Comeback'!

 The US Dollar recorded a strengthening for the US trading session on Monday following support by rising treasury yields ahead of speeches by some policymakers who are likely to give an indication of the start of asset purchases before the end of the year.

U.S. benchmark 10 -year treasury yields reached a three -month high of US $ 1,516. Speeches by Fed representatives will be the focus this week where the event will be chaired by Jerome Powell.

The US dollar index, which measures the US currency against six major currencies, traded 0.2% stronger at 93.442.

The strengthening U.S. dollar was also driven by U.S. -made capital goods orders data rose strongly in August, rising 0.5 percent in August amid high demand for computers and electronic products.

U.S. results rose to its highest level since late June in anticipation of tighter US monetary policy after the Fed announced that they would start ‘tapering’ as early as November and raise interest rates faster than expected.

On the other hand, the Euro fell 0.2 cents against the US dollar to US $ 1.1692. The US dollar strengthened 0.2 cents against the yen to a trading level of 110.925, having previously risen to a three -month high. The US dollar also rose 0.4 cents against the Swiss franc to 0.9275 francs.

The risk -sensitive Australian dollar strengthened as concerns of widespread market contagion from the indebted China Evergrande Group eased. Rising commodity prices also pushed up the Aussie currency.