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The dollar reached its highest level against the yen in 7 months today, Thursday, as it received support from a more regular rise in US Treasury yields ahead of a speech by Jerome Powell, the head of the US Federal Reserve, that may determine the direction the global currency and bond markets will take.
The dollar also traded near its highest level in three months against the Swiss franc, and the US currency also held onto its gains against most currencies, with an atmosphere of calm once again prevailing in the treasury markets, which boosted sentiment.
However, the US dollar suffered losses against its Australian and New Zealand counterparts, as dealers expecting stronger global growth continued to buy currencies linked to commodities.
Investors are eager to see whether Powell will express his concern about the recent wave of volatility and sell-off in Treasury bonds and if he will announce any change in his assessment of the economy’s condition before the next Federal Reserve meeting on March 17th.
The dollar rose to 107.09 yen, its highest level since July of last year. The dollar hit 0.9191 Swiss francs, near the highest level since November. The pound sterling also stabilized at $1.3955, while the euro traded at $1.2057, offsetting a 0.24% loss incurred in the previous session.
The dollar index, which tracks the performance of the greenback against a basket of six major currencies, recorded 91.005, maintaining a 0.32% gain achieved on Wednesday.
The Australian dollar, which is considered an indicator of global growth due to its close association with commodities, rose, recording $0.7799, recovering from earlier losses. The New Zealand dollar, which is also linked to commodities, rose slightly.
