AIRLINK 62.05 Decreased By ▼ -0.43 (-0.69%)
BOP 5.35 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.48 Decreased By ▼ -0.10 (-2.18%)
DFML 15.50 No Change ▼ 0.00 (0%)
DGKC 66.20 Decreased By ▼ -0.20 (-0.3%)
FCCL 17.34 Decreased By ▼ -0.25 (-1.42%)
FFBL 27.65 Decreased By ▼ -0.05 (-0.18%)
FFL 9.25 Decreased By ▼ -0.02 (-0.22%)
GGL 10.08 Increased By ▲ 0.02 (0.2%)
HBL 105.55 Decreased By ▼ -0.15 (-0.14%)
HUBC 121.99 Decreased By ▼ -0.31 (-0.25%)
HUMNL 6.55 Decreased By ▼ -0.05 (-0.76%)
KEL 4.53 Increased By ▲ 0.03 (0.67%)
KOSM 4.40 Decreased By ▼ -0.08 (-1.79%)
MLCF 35.90 Decreased By ▼ -0.30 (-0.83%)
OGDC 123.06 Increased By ▲ 0.14 (0.11%)
PAEL 22.90 Decreased By ▼ -0.10 (-0.43%)
PIAA 30.41 Increased By ▲ 1.07 (3.65%)
PIBTL 5.82 Increased By ▲ 0.02 (0.34%)
PPL 107.99 Increased By ▲ 0.49 (0.46%)
PRL 27.26 Increased By ▲ 0.01 (0.04%)
PTC 17.39 Decreased By ▼ -0.68 (-3.76%)
SEARL 53.15 Increased By ▲ 0.15 (0.28%)
SNGP 62.85 Decreased By ▼ -0.36 (-0.57%)
SSGC 10.70 Decreased By ▼ -0.10 (-0.93%)
TELE 9.10 Decreased By ▼ -0.10 (-1.09%)
TPLP 11.51 Increased By ▲ 0.07 (0.61%)
TRG 70.76 Decreased By ▼ -0.10 (-0.14%)
UNITY 23.75 Increased By ▲ 0.13 (0.55%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,939 Decreased By -5.1 (-0.07%)
BR30 22,774 Decreased By -52.8 (-0.23%)
KSE100 67,124 Decreased By -18.3 (-0.03%)
KSE30 22,089 Decreased By -0.6 (-0%)

LONDON: The dollar rose to multi-month highs against the euro, yen and Swiss franc on Friday after Federal Reserve Chair Jerome Powell expressed no concern about a recent sell-off in bonds.

Speaking at a Wall Street Journal forum, Powell stuck to his stance of keeping interest rates low until the economy has recovered, adding that the sell-off in Treasuries was not “disorderly”.

The Swiss franc fell to a seven-month low of 0.93110 francs per dollar and was flat at 0.92765 by 1153 GMT. The euro slipped 0.3% to a three-month low of $1.19345.

“The US dollar rose sharply higher post-Powell comments (as) many in the market I sense were looking for stronger rhetoric from the Fed to put a break on further rallies in yields,” said Neil Jones, head of FX sales at Mizuho Bank.

“We didn’t get it and the dollar is pushing higher across the board on expectations of further increases in US yields.”

The dollar index rose 0.3% to 91.907, a three-month high. Its gains came as the benchmark 10-year Treasury yield jumped back above 1.5%. Last week, the Treasury yield soared to a one-year peak of 1.614%.

Versus the yen, the dollar rose 0.4% to a nine-month high of 108.39 yen.

Japanese Finance Minister Taro Aso declined to comment on the yen’s decline when asked about how the depreciation would affect the economy.

“With the BoJ’s (Governor) Kuroda saying that the BoJ has no need to change its yield guidance, the yen is, along with the Swiss franc, taking the brunt of the dollar’s yield-fuelled recovery,” said Kit Juckes, chief FX strategist at Societe Generale. “Both look cheap, but the yen in particular isn’t cheap enough yet”.

A rollout of COVID-19 vaccines and impending US fiscal stimulus have boosted confidence in an economic recovery, adding fuel to expectations of higher inflation.

Riskier currencies, including the Australian and New Zealand dollars, slid along with stocks as investor sentiment again turned sour.

The Aussie weakened 0.6% to $0.76690, an almost one-month low. The kiwi fell 0.7% to $0.7133.

Sterling briefly fell below $1.38 to a three-week low. It was last down 0.5% at $1.3826. In the cryptocurrency market, bitcoin fell 1.8% to $47,493. Ethereum dropped 3.9% to $1,478.03.

Comments

Comments are closed.