The dollar rebounded slightly on Tuesday, helped by rising U.S. Treasury yields, although currencies traded in a narrow range as investors struggled to determine the impact of an escalating global trade war.
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| The USD on March 13 increased 0.05% against the Japanese Yen to 148.31. Illustrative photo |
Rising global trade tensions have roiled global financial markets and caused sharp volatility in foreign exchange markets. Markets were somewhat more stable in the Asian trading session on March 13 as investors were temporarily spared from the constant stream of trade policy news.
The dollar rose 0.05 percent against the Japanese yen to 148.31, recovering some of its losses from earlier in the week when the greenback fell to a five-month low against the Japanese currency.
Similarly, the Swiss franc also eased slightly from its three-month peak on March 10 and is currently at $0.8817.
U.S. Treasury yields rose as traders bet on higher inflation in the future, with the 10-year yield holding steady near a one-week high of 4.3047%.
The yield on the two-year note was little changed at 3.9866%.
This helped the US dollar hold its ground and pushed the euro away from a five-month high hit on March 11, with the common European currency currently trading at $1.0890.
The British pound edged up 0.06% to $1.2968, while the dollar index rose from a five-month low on March 11 to stand firm at 103.57.
The Canadian dollar was little changed, trading at 1.4372 CAD/USD.
The Bank of Canada cut its policy interest rate by 25 basis points on March 12, expressing concerns about inflationary pressures and slowing growth due to trade uncertainty and tariff policies.
“While central banks may cut interest rates to offset the negative impact on growth, concerns about inflation may limit their ability to adjust monetary policy,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.
In other markets, the Australian dollar rose 0.07% to $0.6326, while the New Zealand dollar inched up 0.13% to $0.5738.
Source: https://congthuong.vn/dong-usd-phuc-hoi-nho-loi-suat-trai-phieu-kho-bac-my-tang-378035.html
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