On Wednesday, the U.S. dollar fell while remaining well-supported as investors prepared for an interest rate increase in March.
U.S. 10-year Treasury yields reached a new two-year high of 1.903% on Wednesday. However, it was last down four basis points at 1.8272%. In afternoon trading, the U.S. dollar index fell by 0.4% at 95.528.
Bond yields also increased. The sterling, the euro, New Zealand dollars, the Canadian, Australian, and others gained.
In the meantime, the Sterling rose after British inflation grew 5.5% in December. It marked its highest level in 30 years, raising rate hike expectations.
Senior F.X. trader and strategist Juan Perez talked about the process. He said that central banks see the evidence that Q4 did not slow the speed of inflation. He added that places like the U.K. are undergoing CPI numbers not seen since 1990.
Juan Perez also said that they see the dollar gaining short-term.
The Fed has a meeting scheduled for the next week. They will probably provide details on the end of easing, possibly in March. The U.S. central bank might also signal to raise interest rates in March, straight after ending Q.E.
Currency bid prices overview of the U.S. dollar
Dollar index 95.5071 95.7140 -0.22% -0.164% +95.7921 +95.4940
Euro/Dollar $1.1353 $1.1328 +0.22% -0.16% +$1.1357 +$1.1319
Dollar/Yen 114.2401 114.5900 -0.32% -0.76% +114.7851 +114.2050
Euro/Yen 129.68 129.79 -0.09% -0.51% +129.9800 +129.4000
Dollar/Swiss 0.9154 0.9175 -0.25% +0.35% +0.9177 +0.9145
Sterling/Dollar $1.3627 $1.3598 +0.22% +0.77% +$1.3648 +$1.3588
Dollar/Canadian 1.2492 1.2513 -0.17% -1.21% +1.2524 +1.2450
Aussie/Dollar $0.7225 $0.7187 +0.54% -0.62% +$0.7238 +$0.7177
Euro/Swiss 1.0392 1.0391 +0.00% +0.22% +1.0403 +1.0375
Euro/Sterling 0.8331 0.8328 +0.02% -0.83% +0.8342 +0.8314
NZ $0.6796 $0.6765 +0.45% -0.72% +$0.6811 +$0.6764
Dollar/Dollar
Dollar/Norway 8.7610 8.8126 -0.58% -0.55% +8.8220 +8.7490
Euro/Norway 9.9446 9.9682 -0.25% -0.68% +9.9947 +9.9215
Dollar/Sweden 9.0958 9.1357 -0.21% +0.87% +9.1551 +9.0906
Euro/Sweden 10.3257 10.3476 -0.21% +0.91% +10.3686 +10.3160
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