Currencies Overview: A Jump in Yields Raises The Dollar After Faltering Following The Fed’s Comments

Rising US bond yields boosted the dollar on Thursday, March 18th, helping it recover from its lowest level in two weeks after the US Federal Reserve dispelled speculation of an interest rate hike.

And 10-year US Treasury bond yields recorded their highest levels in 13 months in early London trade, rising above 1.7% for the first time since January 24, 2020.

The dollar index, which measures the performance of the US currency against a basket of currencies, rose by 0.4% to 91.671, from its lowest level in two weeks at 91.300 reached after the Federal Reserve meeting on Wednesday.

Federal Reserve Chairman Jerome Powell dispelled speculation that improved economic prospects might push the central bank to abandon its stimulus.

The euro retreated to $1.19505 from a week’s high of $1.19900, which it hit after rising 0.6% on Wednesday. Against the yen, the dollar rose 0.3% to 109.120 yen. The pound sterling was trading unchanged at $ 1.3963.

Later on Thursday, the Bank of England is expected to keep its key interest rate at its lowest low of 0.1% and to keep the £ 895bn bond-buying program unchanged.

The Australian dollar rose to a two-week high of $0.7849 before giving back some of its gains. Its New Zealand counterpart lost momentum for some time after the country recorded a sudden contraction in the gross domestic product in the last three months of last year.

The New Zealand dollar recorded in the last trading $0.7238.

Bitcoin remained at the high level of $58213.06 after rising from the lowest level in a week, which is recorded on Tuesday, which amounted to $53,221.