Forex – Dollar Retreats Despite Rising Yields

© Reuters. The dollar retreated across the board in Asia on Thursday morning – The dollar retreated across the board in Asia on Thursday morning, but remained well above the 90 level as the U.S. 10-year Treasury yields continued to weigh on the currency market. Meanwhile, Australia reported bullish import and export price index.

The that tracks the greenback against a basket of six major currencies last stood at 90.99, down 0.04% at 10:50PM ET (02:50 GMT). Although it was losing its steam slightly on Thursday morning, it was still on a bullish trend overall, climbing from the 89.5 range to above the 90 in a week to hit a three-month high.

The continued to rise on Wednesday, shoring up the greenback. The yield was driven up to a new four-year high of 3.033% on Wednesday, by concerns over the growing supply of government debt and inflationary pressures from mounting oil prices. The yield saw the biggest gain since early 2014.

The pair eased 0.05% to 109.37. On earlier Thursday morning, the pair broke the 109 level to a new high in two and a half months. Focus for the yen this week will be the Bank of Japan’s (BoJ) Interest Rate Decision slated for Friday.

The pair was up 0.05% to trade at 0.7588. The Australian Import Price Index came out at 2.1% compared to the expected 1.3%, beating the previous reading of 2.0%, while the Export Price Index printed a 4.9% increase compared to the previous 2.8%, and a beat of the expected 4.1%. The better-than-expected data gave the Aussie a little boost, though the pair was still at its lowest range in a month.

The pair dropped 0.21% to 1,079.99. South Korea reported positive economic data on Thursday. Its GDP for January to March rose 1.1%, beating the estimated 1.0%. President Moon Jae-in is also set to meet his North Korean counterpart Kim Jong-un on Friday, catching the world’s attention on how geopolitical relations would go in East Asia and how it for the much anticipated U.S.-North Korean summit.

In China, The People’s Bank of China set the fix rate of yuan against the dollar at 6.3283 versus the previous day’s 6.3066. The pair eased 0.03% to trade at 6.3248.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.