AIRLINK 62.60 Increased By ▲ 2.17 (3.59%)
BOP 5.33 Decreased By ▼ -0.02 (-0.37%)
CNERGY 4.56 Decreased By ▼ -0.04 (-0.87%)
DFML 15.51 Increased By ▲ 0.67 (4.51%)
DGKC 66.30 Increased By ▲ 1.50 (2.31%)
FCCL 17.55 Increased By ▲ 0.69 (4.09%)
FFBL 28.00 Increased By ▲ 3.25 (13.13%)
FFL 9.25 Increased By ▲ 0.19 (2.1%)
GGL 10.08 Increased By ▲ 0.12 (1.2%)
HBL 105.30 Increased By ▲ 1.09 (1.05%)
HUBC 122.20 Increased By ▲ 4.68 (3.98%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.49 Decreased By ▼ -0.06 (-1.32%)
KOSM 4.45 Decreased By ▼ -0.12 (-2.63%)
MLCF 36.25 Increased By ▲ 0.84 (2.37%)
OGDC 122.81 Increased By ▲ 0.42 (0.34%)
PAEL 22.98 Increased By ▲ 1.07 (4.88%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.85 Decreased By ▼ -0.09 (-1.52%)
PPL 107.20 Decreased By ▼ -0.17 (-0.16%)
PRL 27.07 Increased By ▲ 0.56 (2.11%)
PTC 18.08 Increased By ▲ 1.98 (12.3%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.06 Increased By ▲ 1.86 (3.04%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.22 Increased By ▲ 0.73 (8.6%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.90 Increased By ▲ 0.99 (1.42%)
UNITY 23.67 Increased By ▲ 0.16 (0.68%)
WTL 1.29 Increased By ▲ 0.01 (0.78%)
BR100 6,945 Increased By 66.8 (0.97%)
BR30 22,817 Increased By 248.4 (1.1%)
KSE100 67,113 Increased By 565.1 (0.85%)
KSE30 22,082 Increased By 167.3 (0.76%)

LONDON: The US dollar pared losses after reaching multi-year lows against sterling and the Australian dollar on Monday as traders focused on whether vaccine progress, expectations for faster economic growth and inflation would push bond yields higher.

Yields on 10-year US and German government bonds touched one-year and eight-month highs respectively before retreating as Europe’s trading session advanced to midday.

The US dollar index rebounded from lows hit during the night but gradually slowed and was broadly unchanged, down 0.03% at 90.255.

“Monday mornings don’t necessarily tell me much”, said Kit Juckes a strategist at Societe Generale, adding that a clearer trend might emerge once trading resumes in New York.

“The market is still short in dollars”, he said, pointing out to the likelihood of a “shake out” should US yields continue their rise towards 1.5%.

The euro gained against the dollar, rising 0.17% to $1.2138 after data showed German business morale rising more than expected in February thanks notably to the resilient industrial sector.

Traders were also waiting for a speech at 1345 GMT by European Central Bank President Christine Lagarde.

Commerzbank analyst Ulrich Leuchtmann argued that much at stake for the relationship between the euro and the dollar lies in the growth differential between the two economies.

“Where EUR-USD is going to go medium-term depends on whether the US economy really will be able to achieve a stronger post-lockdown boom than Europe”, he said. He expects the common currency to suffer in that regard in the first half of 2021.

The British pound held the $1.40 line after reaching 1.4050, its highest since April 2018, as Prime Minister Boris Johnson announced a path out of lockdowns on the back of rapid vaccinations. The Aussie rose as much as 0.5% to an almost-three-year high of $0.7908 before letting the dollar come back to 0.7889.

Comments

Comments are closed.