He Global dollar gained ground This Thursday after touching eight-month lows, Black Mondayand was also strengthened against the yen Japanese, on a day marked by increases in US bond yields.
The dollar index, which measures the greenback’s value against a basket of currencies including the yen and the euro, gained 0.09% to 103.20, after hitting an eight-month low of 102.69 on Monday. The euro fell 0.04% to $1.0917.
He yen has risen 11% since hitting a 38-year low in July, helped by government intervention, a surprise rate hike by the Fed and Bank of Japan (BoJ) and the slowdown of the employment in the United States that has weighed on the dollarwhich fell 0.3% to 146.26 yen today.
The rally has forced investors to drastically unwind carry trade operationsin which they borrow cheaply from Japan to buy dollars and other currencies to invest in higher-yielding assets, helped trigger a 12% drop in Japanese stocks on Monday.
U.S. Treasury yields rose Thursday morning after data on jobless claims fueled hopes that the U.S. economy would not face an imminent recession.
The yield on the 10-year U.S. Treasury note rose 2.1 basis points to 3.988% from 3.967% late Wednesday, while the yield on the 30-year note rose 1.6 basis points to 4.2775% from 4.261%.
The yield on two-year bonds, which normally moves in line with interest rate expectations, rose 2.9 basis points to 4.0297% from 4.001% at the close on Wednesday.
“In my view, the rate market (for government bonds) has reached levels even higher than the equity market,” said Carl Hammer, global head of asset allocation at SEB.
He added that markets are expecting too many interest rate cuts from central banks. “When I look at most of the growth indicators that we follow, I’m not too worried about them,” he said.
The dollar in Uruguay continues to decline
He dollar fell 0.27% compared to Wednesday, closing at 40.296 pesos, according to the official exchange rate. Central Bank of Uruguay (BCU), chaining its third consecutive day of decline and going through the week in negative territory, although it continues to operate within the 40 pesos range.
The US currency has accumulated a weekly decline of 0.40% compared to Friday, a monthly variation of 0.05% and an annual variation of 3.26%, since its interbank rate is 1.27 pesos above the one registered after the close of the last exchange day of last year.
Source: Ambito
