Commodity News
HeadLine : Dollar Up, Yen down to Three-Year Low Over Soaring Energy Costs
Date : Oct 12 2021
The dollar was up on Tuesday morning in Asia, while the yen hit a fresh three-year low. The Japanese currency continued a sharp fall over bets that surging energy prices will drive Japan's demand for dollars. Bets also rose that the U.S. will hike interest rates well ahead of its peers. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.03% to 94.403. The yen is also sensitive to rising U.S. yields, since rates at home are anchored near zero. Benchmark 10-year Treasury yields extended gains on Tuesday and, at 1.6136%, are their highest since June and up 30 bps in three weeks. Soaring energy prices, and their inflationary impact, also make it likelier that the U.S. Federal Reserve will begin asset tapering as planned in November 2021 and hike interest rates in 2022 despite last Friday’s disappointing U.S. jobs report. Other central banks are also paying attention to price concerns, with the Bank of England signaling that it will hike interest rates to curb inflation. 

Source: Investing
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