Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

FOREX-Dollar hits 11-month high as U.S. bond yields jump

Published 15/11/2016, 02:42 am
© Reuters.  FOREX-Dollar hits 11-month high as U.S. bond yields jump
EUR/USD
-
USD/JPY
-
USD/CNY
-
DX
-
DE10YT=RR
-
US10YT=X
-
JP10YT=XX
-
DXY
-
USD/CNH
-

* Dollar tracks U.S. yields to highest in almost a year

* Yen slips to lowest since June, euro since January

* Yuan at pre-2010 trough, when offshore market was launched (Updates market action, changes dateline; previous LONDON)

By Richard Leong

NEW YORK, Nov 14 (Reuters) - The dollar rose to an 11-month high against a basket of major currencies on Monday, in step with a jump in U.S. bond yields as traders bet fiscal and trade policies under a Donald Trump administration would stoke inflation.

Trump's stunning U.S. presidential win last week also sparked expectations of similar victories in Europe in the coming months. Worries over a rising tide of nationalist sentiment and restrictions on trade across Europe put pressure on the euro, analysts said.

China's yuan CNH= fell to its weakest against the dollar since before the launch of its offshore market in 2010.

"A lot of the move with the dollar has to do with higher yields," said Christopher Vecchio, currency analyst at FXCM in New York. "It's a seismic moment for markets."

The dollar index was 1.1 percent higher at 100.16 after touching 100.20 earlier Monday, which was its highest since Dec. 3, 2015. .DXY

The benchmark 10-year Treasury note yield rose to 2.26 percent early on Monday, its highest since early January, while a bond market gauge on investors' 10-year inflation expectations climbed to its highest level in over two years. US10YT=RR USBEI10Y=RR

U.S. yields have lifted European and Japanese yields as those economies continue to struggle with weak growth and inflation. This could force the European Central Bank and Bank of Japan to stick to their ultra-loose monetary policies for a longer period, analysts said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The euro shed 1.2 percent at $1.072 after hitting its lowest level against the greenback since Dec. 3, 2015, while the dollar gained 1.6 percent at 108.30 yen after rising to its strongest level since June 23. EUR= JPY=

The yield on 10-year German Bunds was 0.368 percent, the highest since late January, and the yield on 10-year Japanese government bonds was -0.016 percent, hovering at its highest level in two months. DE10YT=RR JP10YT=RR

The yuan has weakened on worries over Trump and the Republican-controlled Congress may slap tougher restrictions on Chinese imports.

The Chinese currency was down 0.5 percent against the dollar at 6.8596 yuan. ========================================================

Currency bid prices at 10:27AM (1527 GMT) Description

Last

U.S. Close Pct Change

Previous

Session

Euro/Dollar

$1.0715

$1.0850

-1.24% Dollar/Yen

108.3100

106.6700

+1.54% Euro/Yen

116.04

115.83

+0.18% Dollar/Swiss

0.9987

0.9875

+1.13% Sterling/Dollar 1.2450

1.2599

-1.18% Dollar/Canadian 1.3564

1.3540

+0.18% Australian/Doll 0.7539

0.7550

-0.15% ar

Euro/Swiss

1.0703

1.0716

-0.12% Euro/Sterling

0.8605

0.8622

-0.20% NZ

0.7079

0.7115

-0.51% Dollar/Dollar

Dollar/Norway

8.5171

8.4032

+1.36% Euro/Norway

9.1276

9.1286

-0.01% Dollar/Sweden

9.1624

9.0912

-0.48% Euro/Sweden

9.8174

9.8650

-0.48%

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.