“The BOJ did the opposite of (currency) normalization. It has been hell-bent on it,” said Richard Benson of Millennium Global Investments in London. “I wouldn’t be surprised if the BOJ stepped in because they have a lot of dollars and they can easily sell them”Benson noted, adding, “There are obvious numbers to talk about and levels, but the narrative is very much about speed rather than level. So slow and gradual is fine.”
The dollar index, which compares the greenback to a basket of six major currencies, also rose Tuesday, topping 101 points for the first time in more than two years. It later traded 0.2% higher at 100.98 units.
Supporting the dollar is the continued rise in the benchmark 10-year US debt yield, which hit 2.93% on Tuesday, the highest since December 2018. Meanwhile, the yield on 10-year inflation-linked debt was positive for the first time in two years.
Against the Swiss franc, the dollar reached its highest since July 2020, at 0.9519 units. For its part, the euro recovered some ground, rising 0.1% to $1.0791, but remains close to last week’s two-year low of $1.0756.
Source: Ambito
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