NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

FOREX-Dollar hits new one-year high to yen on U.S. pandemic recovery optimism

Published 31/03/2021, 11:55 am
© Reuters.
EUR/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
DX
-
US10YT=X
-
BTC/USD
-
PYPL
-
=EUR
-
USD/CNH
-

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Kevin Buckland

TOKYO, March 31 (Reuters) - The dollar rose to a fresh one-year high versus the yen and traded near multi-month peaks with other rivals on Wednesday as investors bet that massive fiscal stimulus and aggressive vaccinations will help the U.S. lead a global pandemic recovery.

President Joe Biden is set to outline later on Wednesday how he intends to pay for a $3-$4 trillion infrastructure plan, after earlier this week saying 90% of adult Americans would be eligible for vaccination by April 19. dollar index =USD held above 93 after surging as high as 93.357 on Tuesday. It has climbed from close to 90 at the start of March, on course for its best month since 2016.

The greenback set a fresh one-year top of 110.48 yen JPY= early in Wednesday's Asian session, and hovered near Tuesday's almost five-month high of $1.1711 per euro =EUR .

"U.S. economic outperformance can continue to underpin the USD in the near term," Commonwealth Bank of Australia currency strategist Carol Kong wrote in a client note.

"JPY will be driven by the general USD strengthening trend," potentially rising to 113 by year-end, she said.

The dollar was also supported from a spike in U.S. bond yields, which make the currency more attractive as an investment.

The yield on the benchmark 10-year Treasury note US10YT=RR jumped to a one-year high of 1.776% on Tuesday.

Investors will watch closely monthly U.S. nonfarm payrolls data on Friday, with Federal Reserve policymakers so far citing slack in the jobs market for their continued lower-for-longer stance on interest rates, which has boosted the growth outlook but also stoked worries about inflation.

Data overnight showed U.S. consumer confidence soared this month to the highest since the start of the pandemic, supporting views that economic growth will accelerate in the coming months, driven by more fiscal stimulus and an improving public health situation. dollar AUD= edged up to $0.7608, consolidating after its drop to $0.7564 last week, the lowest level seen this year.

The Chinese yuan CNH= traded around 6.57 per dollar in the offshore market, from the weakest since November at 6.5838, touched on both Monday and Tuesday.

Bitcoin traded just below $59,000, trying to close the distance to the record peak at $61,781.83 set earlier this month.

PayPal Holdings PYPL.O said Tuesday it launched a "Checkout with Crypto" service, which will allow U.S. users to use their cryptocurrency holdings to pay online merchants globally.

========================================================

Currency bid prices at 042 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1722

$1.1716

+0.06%

-4.05%

+1.1726

+1.1714 Dollar/Yen

JPY=D3

110.6050

110.3400

+0.25%

+7.09%

+110.6070 +110.4500 Euro/Yen

EURJPY=

129.65

129.28

+0.29%

+2.15%

+129.6500 +129.2600 Dollar/Swiss

CHF=EBS

0.9428

0.9419

+0.06%

+6.53%

+0.9428

+0.9425 Sterling/Dollar GBP=D3

1.3740

1.3742

+0.03%

+0.61%

+1.3747

+1.3738 Dollar/Canadian CAD=D3

1.2614

1.2629

-0.11%

-0.93%

+1.2628

+1.2615 Aussie/Dollar

AUD=D3

0.7611

0.7597

+0.20%

-1.05%

+0.7615

+0.7595 NZ

NZD=D3

0.6988

0.6983

+0.11%

-2.65%

+0.6995

+0.6983 Dollar/Dollar

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.