Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up, Boosted by Higher Yields and Rising Hopes of U.S. Recovery

ForexAug 11, 2020 10:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia, with higher U.S. yields and rising hopes of a U.S. economic recovery from COVID-19 supporting the greenback.

Yields on 10-year U.S. debt saw their biggest gains in two months on Tuesday, attracting Japanese investors, ahead of a massive $38 billion auction later in the day.

“That is reflected in the rotation in equities into more cyclical sectors and plays into the idea that U.S. Treasury yields should be higher, reflecting that improvement in prospects for the global recovery... Dollar/yen is the most sensitive...but higher U.S. Treasury yields should in theory be broadly supportive for the dollar,” NAB senior FX strategist Rodrigo Catril told Reuters.

Meanwhile, uncertainty surrounding the latest U.S. stimulus measures capped the dollar’s gains, with investors looking to see if Congress can reach a consensus for the measures.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.13% to 93.765 by 9:53 PM ET (2:53 GMT), and the USD/JPY pair was up 0.14% to 106.62.

The AUD/USD pair fell 0.13% to 0.7133 and the NZD/USD pair slipped 0.18% to 0.6564. with both Antipodean countries continuing their battle against COVID-19.

Australia saw consumer confidence collapse, with the Westpac consumer sentiment index diving 9.5% to 79.5 in August. The second largest city of Melbourne is currently under stage 4 COVID-19 restrictions, and the country reported the biggest daily rise in infections in three days on Wednesday.

Across the Tasman Sea, Auckland re-entered lockdown as four new cases, New Zealand’s first in 102 days, were reported. The Reserve Bank of New Zealand handed down its interest rate policy decision, which followed expectations and remained unchanged at 0.25%.

“It’s far too soon to say what the exact implications are, but the return of COVID-19 presents downside risk to the outlook... the (policy) committee can ill-afford to be complacent, and need to underscore that they will do what it takes. We thus expect a very dovish tone, which poses significant downside risks for the New Zealand dollar,” ANZ analysts warned in a note ahead of the decision.

The USD/CNY pair rose 0.22% to 6.9563 and the GBP/USD pair was down 0.10% to 1.3035. The GBP came under pressure after Tuesday's release of labor market data that missed expectations and indicated that British job losses were at their highest level in more than a decade last quarter.

Dollar Up, Boosted by Higher Yields and Rising Hopes of U.S. Recovery
 

Related Articles

Dollar Edges Lower Ahead of Fed Meeting; Yuan Weakens
Dollar Edges Lower Ahead of Fed Meeting; Yuan Weakens By Investing.com - Sep 21, 2021

By Peter Nurse Investing.com - The dollar edged lower in early European trade Tuesday, slipping from a month high, ahead of the start of this week’s crucial Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email