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Forex – Dollar Rises; Geopolitical Strains Ease

Published 23/04/2018, 01:19 pm
© Reuters.  The dollar opened the week rising aganst other major currencies
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Investing.com – The dollar opened the week rising against other major currencies as supported by the steep rise in U.S. Treasury yields last Friday. This week’s currency market is occupied by a slew of economic data, as investors will see inflation data from Australia, Japan and the U.S. to look for cues.

The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 90.15, up 0.07% at 11:17PM ET (03:17 GMT). The greenback climbed up to the 90 level after being subdued in the 89 range in the previous week.

The dollar got a lift from yields on 10-year U.S. Treasuries that inched up on Friday to 2.96%, the highest level since January 2014.

The U.S. economic data to be reported this week includes existing home sales on Monday, new home sales on Tuesday, and first quarter GDP on Friday.

While the trade tensions between China and the U.S. are still ongoing, geopolitical tensions related to North Korea may continue to ease. On Friday, North Korea’s leader Kim Jong Un said he might be open to putting nuclear tests on hold.

The USD/JPY pair gained 0.15% to 107.82. This week Japan is releasing a slew of economic data, including the PMI and retail sales figures. The Bank of Japan’s is also set to deliver policy decision on Friday.

In China, The People's Bank of China set the fix rate of yuan against the dollar at 6.3034 versus the previous day's 6.2897. The USD/CNY pair eased 0.01% to trade at 6.2956.

The AUD/USD pair was up 0.08% to trade at 0.7678. The Reserve Bank of Australia’s Monetary Policy Minutes showed the bank was in no hurry for rate hikes. Meanwhile, Australia’s CPI data is due on Tuesday.

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