Dollar edges up as U.S. yields rise on pared bets for deep rate cuts
Wednesday, 10 July 2019 08:17 WIB |
CURRENCIES |DOLLARDolarDolar AS
The dollar edged toward a three-week high against a basket of major currencies on Wednesday, as an unwinding of bets on deep U.S. interest rate cuts pushed Treasury yields higher.
Further gains in the greenback depend on the tone Federal Reserve Chairman Jerome Powell strikes during two days of Congressional testimony starting later on Wednesday.
Expectations for a 50 basis point rate cut at a Fed meeting later this month have evaporated, but investors still expect a 25 basis point rate cut due to weak inflation and worries about the U.S.-China trade war.
The dollar could continue to edge higher if Powell™s comments on the U.S. economy are perceived as neutral or even slightly hawkish, which would support the argument that additional rate cuts will be limited.
In Asian trading, the index that tracks the greenback against six other major currencies was at 97.518 after touching 97.588 on Tuesday, which was the highest since June 19.
The dollar edged up to 108.975 yen in Asia, which was its strongest level since May 31.
The benchmark 10-year Treasury yield was at 2.067%, up from a 2-1/2-year low of 1.9390% reached on July 3.
Source : Reuters