US Dollar gains as bond yields rise, Fed in focus

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US Dollar gains as bond yields rise, Fed in focus

On Friday, the US Dollar rose marginally and posted the largest weekly percentage gain in more than a month as investors remained optimistic that the US Fed might stay at its hawkish rate-hike path. In the matter of the fact, in the day’s gain in US Dollar Index (DXY) was almost entirely galvanized by a hawkish remark from Fed’s Bullard that eventually had restored investors’ bet of a 75bps (basis percentage point) rate-hike.

The St Louis Fed Chair James Bullard was quoted as saying earlier in the session that following a “generous” analysis of the monetary policy, the US Fed would need to keep rates raising as the latest rate-hikes had had limited impacts on inflation thus far.

US Dollar gains, posts largest weekly gain since early-October

Citing statistics, in the day’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies gained 0.34 per cent to 106.54, reporting a weekly percentage gain of 0.6 per cent while partially paring last week’s 4.0 per cent in losses which had been the US Dollar Index’s worst weekly decline since March 2020.

Aside from that, US Treasury bond notes gained for a second straight session in a row, as 10-year-yields rose to 3.825 per cent.

Besides, the bloc’s common currency euro fell 0.34 per cent against its American peer to $1.0329, while British Pound added 0.22 per cent to $1.1894. Safe-haven Swiss Franc lost 0.12 per cent to $0.9533 against the greenback, while Canadian Dollar shrugged off 0.43 per cent to $1.3385.

On top of that, risk-sensitive Aussies lost 0.21 per cent to $0.6672 against the American currency, while Japanese Yen shed 0.08 per cent $140.32.

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