2023-12-05 22:10:25
Around 10:40 p.m., the greenback rose 0.35% once morest the single currency, to 1.0799 dollars per euro. Earlier, it rose to $1.0778, a three-week high.
The dollar recorded further gains on Tuesday, still supported by the favorable gap between American rates and those of other major nations, as well as by a movement of risk aversion.
Around 9:40 p.m. GMT, the greenback rose 0.35% once morest the single currency, to 1.0799 dollars per euro. Earlier, it rose to $1.0778, a three-week high.
It also progressed once morest the British currency (+0.29%), to 1.2596 dollars per pound sterling.
For Ruta Prieskienyte, from Convera, the American currency benefited from a retreat by operators towards assets considered safer, such as the dollar.
Conversely, oil or metals were sold, as were currencies considered to be the most volatile, such as the Norwegian crown or the South African rand.
As for the Australian dollar, it paid for the maintenance, by the Australian central bank (RBA), of the main key rate at 4.35%.
For Erik Nelson of Wells Fargo, the strengthening of the dollar is mainly attributable to bond rate spreads.
Thus, if American yields relaxed significantly on Tuesday, European rates fell even further.
The spread between U.S. and German 10-year yields rose to a three-week high.
For Boris Kovacevic of Convera, the dollar’s short-term trajectory will depend on US employment data expected this week, the ADP report on Wednesday, new jobless claims on Thursday, and the monthly publication from the Ministry of Work, Friday.
Mr. Nelson expects a drop in the greenback following Friday’s publication, the most followed of the week. “It would really take a very high figure to raise bond rates” and provide new impetus to the dollar, according to him.
Aside from the decline of the first two days of the week, emerging currencies remain the big winners from the dollar’s decline since the start of autumn.
But Mr. Nelson sees a second phase emerging, which would benefit more stable currencies, such as the Swiss franc or the euro.
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