Business News Asia
The U.S. dollar index rose against other major currencies on Tuesday (April 19) as U.S. Treasury note yields climbed to the highest level in more than three years on current expectations that the U.S. Federal Reserve (Fed) will accelerate interest rate hikes to curb inflation.
- The dollar index against the six major currencies in a basket of currencies rose 0.18% to 100.9610.
- The US dollar strengthened against the yen at 128.75 yen from 126.96 yen.
- The dollar strengthened against the Swiss franc at 0.9513 francs from 0.9444 francs.
- The US dollar was also stronger against the Canadian dollar at 1.2624 Canadian dollars from 1.2616 Canadian dollars.
- The euro was higher against the US dollar at $1.0796 from $1.0787.
- The pound fell to $1.2997 from $1.3011.
- The Australian dollar rose to $0.7374 from $0.7350.
The dollar rose after the yield on 10-year U.S. Treasury bonds rose to 2.91%, its highest level since late 2018, on forecasts that the Fed will accelerate rate hikes to curb inflation.
St. Louis Fed President James Bullard said inflation in the U.S. is now too high. And there is a possibility that the Fed will raise interest rates to between 0.75% and 3.5% by the end of the year to curb inflation in the U.S., which has risen to its highest level in 40 years.
“What we need to do now is to bring interest rates back to neutral and and then proceed to the next step. We view that the economy is likely to expand better than expected and believe that the economy will not enter a recession. The unemployment rate, which is now 3.6%, is likely to fall below 3%.”
Investors will be keeping an eye on the Fed’s Beige Book, which will be released today. It is expected to show the outlook for the US economy and the direction of the Fed interest rate