The dollar advances after good consumer data in the US and leaves the Japanese yen in a situation of weakness and doubts about interventionism.
He dollar remains firm on Wednesday, buoyed by rising bond yields United States Treasury bonds and gaining ground japanese yen, since the calm of the markets encouraged investors to resume carry trade operations, while the euro digested the German inflation data.
The dollar hit a high of 157.41 yen early on Wednesday, approaching the levels that prompted episodes of likely Tokyo intervention in late April and early May, although rising at a much slower pace than last month. It was later trading stable at 157.10 yen.
Dollar: why the yield on US Treasury bonds is rising
Slightly weaker US consumer price data this month weakened the dollar overall. Since then, however, US Treasury yields have resumed their climb, with benchmark 10-year yields at their highest level in almost four weeks, at 4.57%.
A lackluster two- and five-year bond auction on Tuesday raised questions about demand for U.S. government debt, and data showed US consumer confidence had unexpectedly improved in May, were the factors driving the rise in yields.
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The dollar rose 0.12% against the yuan abroad, at 7.2774 units per dollar, its highest level in six weeks. The yen was also affected by carry trades, in which investors borrow in a low-yielding currency to invest in higher-yielding currencies.
Currencies: how the rest of the currencies operate
The euro reacted to the datato German regional inflation, falling to a almost two-year low against the pound at 84.84 pence.
The common currency rebounded after national data showed German inflation rose slightly more than expected to 2.8% in May, although a level that is unlikely to do anything to alter expectations of a Bank rate cut. European Central next month.
The euro was stable against the dollar at $1.0856, on track for its first monthly increase of the yearand gained a fraction against the pound, at 85.15 pence.
The pound was slightly down against the dollar at $1.2750, having hit a two-month high the day before, leaving the dollar index flat at 104.67.
Source: Ambito
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