Investing.com - The dollar rallied to hit five-month’s high overnight in Asia, and its momentum remained on Wednesday morning. Japan’s GDP figures missed expectation, ending its nine-quarter growth run.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 93.20, up 0.06% at 11:20AM ET (03:20 GMT).
The dollar index hit 93.32 on Tuesday night in Asia, the highest level this year. As the relations on the Korean peninsula improved and a full-blown trade war between the U.S. and China became less likely, investors turned to U.S. 10-year Treasury yields for cues.
The United States 10-Year yield further rose to 3.089% on early Wednesday morning, the highest level in seven years. A rise in yields widened interest rate gap between the U.S. and other developed economies, increasing the dollar’s appeal.
The AUD/USD pair eased 0.05% at 0.7467. The Australian wage price index missed expectations with the quarter-on-quarter figure coming in at 0.5%, under the expected 0.6%, and the Aussie declined in early morning.
In China, the People's Bank of China set the set the reference rate for the yuan against the dollar, the mid-point from which the currency is allowed to trade, at 6.3745 versus the previous day's 6.3486. The USD/CNY pair gained 0.03% to trade at 6.3704.
Add a Comment
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.