SYDNEY: The dollar surged to a seven-year high against the yen on Wednesday, following a rise in U.S. bond yields and FR officials’ frequently upbeat comments on the outlook for the U.S. financial system.
The greenback also rose against the Australian dollar, which slid to a four-year low after data showed Australia’s economy unexpectedly slowed last quarter, prompting markets to price in more chances of an interest rate cut.
Against the yen, the dollar climbed to 119.44 yen on trading platform EBS, its strongest level since August 2007. The dollar last traded at 119.35 yen, up 0.1 per cent on the day.
Besides the psychologically key 120.00 yen level, the greenback faces resistance at about 119.56 yen, the 23.6 per cent retracement of its 1985 to 2011 decline.
The dollar was supported by a mostly rosy outlook for the U.S. economy given earlier this week by New York Fed President William Dudley and Vice Chair Stanley Fischer.
Providing a positive backdrop for the dollar, U.S. Treasury yields have risen this week, with the two-year yield now at 0.54 per cent, having pulled up from a one-month low of 0.457 per cent set on Monday.
“In terms of flows, overseas (non-Japanese) players seem to be buying (dollars against the yen) aggressively on dips,” said a trader for a Japanese bank in Singapore.
shanghai shares start week with losses 25 june 2018
Hong Kong, (UrduPoint / Pakistan Point News - 25th Jun, 2018 ) :Hong Kong and mainland Chinese stocks fell on...