Dollar holds gains ahead of Powell, Swiss franc falls to 5-month low

* Powell comments awaited

* Swiss franc, yen hit multi-month lows

* Aussie, Kiwi, gain

* Graphic: World FX rates Link

By Ritvik Carvalho

LONDON, March 4, (Reuters) - The dollar hit a seven-month high against the yen on Thursday as a more orderly rise in U.S. Treasury yields lent support ahead of a speech by Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies.

The dollar also hit a 5-month high against the Swiss franc and held on to gains against most currencies as a renewed sense of calm in the Treasury market underpinned sentiment.

However, the greenback lost ground against its Australian and New Zealand counterparts as traders who expect stronger global growth continued to stock up on commodity currencies.

Investors are anxious to see if Powell expresses concern about a recent volatile sell-off in Treasuries and if there is any change in his assessment of the economy before the Fed's next meeting ending March 17.

The dollar may extend gains versus the yen as long as Treasury yields rise at a measured pace, but the greenback is likely to fall against currencies of major commodities exporters as more signs point to a rebound in global growth.

"Comments that he (Powell) is monitoring events in the Treasury market might be enough to calm things down, encourage a return to high yield FX and a softer dollar but no such concern would suggest the Fed is happy for US Treasury yields to ‘find the right level’ – as our bond strategy colleagues say – potentially triggering another spike in US yields and more dollar short-covering," ING said in a note to clients.

The dollar rose to 107.28 yen JPY=D3 , the highest since July last year.

The U.S. currency bought 0.92090 Swiss franc CHF=EBS during early deals in London, its highest against the safe haven currency since October 2.

The British pound GBP=D3 steadied at $1.3942, while the euro EUR=D3 traded at $1.2043, down 0.15% on the day.

The benchmark 10-year Treasury yield US10YT=RR backed down to 1.4533%, after rising earlier to 1.4910%.

A chaotic sell-off in Treasuries from the start of the year on concerns that massive government spending to support the global economy may drive up inflation culminated in 10-year yields rising to a one-year high of 1.6140% last week.

The move was so rapid that global stock markets tumbled and the dollar swooned against most currencies, but the greenback has since regained its composure as disorderly selling of Treasuries ebbed, for now at least.

The dollar index USD= stood at 91.120 against a basket of six major currencies, holding on to a 0.32% gain from Wednesday.

The Australian dollar AUD=D3 , which is often traded as a proxy for global growth because it is closely tied to commodities, recovered from early losses and rose to $0.7802, up 0.35% on the day.

The New Zealand dollar NZD=D3 , another closely watched commodity currency, also firmed 0.3% to $0.7268.

Traders said the Aussie and the kiwi are likely to continue rising because both economies are rebounding strongly from the COVID-19 pandemic and they will both benefit from an acceleration in global trade.

In the cryptocurrency market, bitcoin BTC=BTSP gained 0.2% to $50,468, while rival digital currency ether ETH=BTSP gained 0.85% to $1,581.

Bitcoin has surged 78% so far this year as it gains more acceptance in the financial services industry, but the U.S. financial regulator is likely to start working on guidelines for digital assets, which could increase scrutiny of cryptocurrencies.

World FX rates Link

Reporting by Ritvik Carvalho; additional reporting by Stanley
White in Tokyo; Editing by Giles Elgood

免责声明: XM Group仅提供在线交易平台的执行服务和访问权限,并允许个人查看和/或使用网站或网站所提供的内容,但无意进行任何更改或扩展,也不会更改或扩展其服务和访问权限。所有访问和使用权限,将受下列条款与条例约束:(i) 条款与条例;(ii) 风险提示;以及(iii) 完整免责声明。请注意,网站所提供的所有讯息,仅限一般资讯用途。此外,XM所有在线交易平台的内容并不构成,也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。


本网站上由XM和第三方供应商所提供的所有内容,包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接,皆保持不变,并作为一般市场评论所提供,而非投资性建议。所有在线交易平台所发布的资料,仅适用于教育/资讯类用途,不包含也不应被视为适用于金融、投资税或交易相关咨询和建议,或是交易价格纪录,或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解,XM非独立投资研究提示和风险提示相关资讯,更多详情请点击 这里

我们运用cookies为您提供最佳的网页使用体验。更改您的 cookie 设定跟详情。

风险提示: 您的资金存在风险。杠杆商品可能不适合所有客户。 请详细阅读我们的风险声明