The dollar stabilizes this Thursday near its highest level since Novemberkeeping the yen close to an intervention zone and the euro at eight-month lows, while longer-dated US Treasury yields continued to rise.
He dollar index, which measures the performance of the greenback against a basket of six other currenciesis slightly below 106.59, although it remains on track for its 11th consecutive week of gains, and is just below its 10-month high reached on Wednesday.
In addition, the index has gained 2.86% so far in September, which would be its largest monthly increase in a year.
The euro rises against the dollar
The euro, which has been hurt by the strength of the dollarrose 0.14% to $1.0517, but is still close to its January low of $1.0482 and, if it falls below that level, it would reach its lowest price this year.
The Benchmark 10-year US Treasury yields hit 4.642% on Wednesdayits highest level since 2007, as markets get used to the Federal Reserve’s official interest rates staying higher for longer.
Federal Reserve Bank of Minneapolis President Neel Kashkari was one of the Fed’s voices warning markets about the possibility of further hikes, saying Wednesday that ample evidence of ongoing economic strength meant more adjustments could be on the way.
Fed Chair Jerome Powell is scheduled to speak later on Thursday, which could give markets some clues about the path of US monetary policy.
Yen vs. dollar
Meanwhile, the Japanese yen rises slightly to 149.39 units per dollar, just below the 149.71 units per dollar reached on Wednesday, its lowest level in 11 months.
The Japanese currency has also been affected by the rise in oil priceswhich on Wednesday reached their highest level in 2023, after the sharp drop in crude oil reserves in the United States aggravated concerns about global supply shortages.
The markets consider that the area of 150 yen per dollar could provoke an intervention by the Japanese authorities, as happened last year.
The pound was up 0.23% at $1.2163 but still hovering around six-month lows, and the Swiss franc was also under pressure at 0.9195 per dollar, again its lowest since March.
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