Currencies Overview: Dollar Rising as Economic Data And Its Impact on Interest Rates Are Anticipated

The dollar has turned higher in Asian trading, halting a month-long downturn, as investors are working to see if the major US economic recovery may push interest rates higher, as they await upcoming economic data and policy speeches for indicators.

The US currency rose 0.2% against the yen, euro and pound sterling, in limited dealings due to a holiday in China and Japan. It rose slightly more against the trade-sensitive Australian and New Zealand dollars, while the dollar index rose against a basket of other major currencies 0.2% to 91.151.

The euro last traded at 2.2036 dollars, while the dollar reached 109.29 yen. The Australian dollar fell 0.3% to $0.7740 and the New Zealand dollar fell 0.4% to $0.7171.

The yields of record ten-year US Treasury bonds declined yesterday, Monday, after data came weaker than expected for the manufacturing sector in the United States and confirmation from the President of the Federal Reserve Bank of New York, John Williams, that the recovery so far “is not close enough” to push in the direction of Monetary tightening.

On the other hand, the meetings of the central banks are under spotlight. The Australian dollar was little changed after an unexpected decision by the Reserve Bank of Australia today to keep policy unchanged. However, the bank has updated some key economic forecasts and is due to release a more detailed forecast on Friday.

The British pound fell slightly to $1.3870, as a meeting of the Bank of England on Thursday was the main event in the follow-up of dealers.

In the cryptocurrency market, Ethereum advanced to a new peak, this time approaching the level of $3,500, as speculators push the cryptocurrency markets, which are in a flurry, to rise. It was last at $3,373.