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FOREX-Dollar rises to 3-week peak vs yen; ECB's Nowotny lifts euro
2013年8月23日 / 下午1点39分 / 4 年前

FOREX-Dollar rises to 3-week peak vs yen; ECB's Nowotny lifts euro

* Elevated U.S. bond yields help dollar
    * Gap between 2-year US/Japan bond yield at 1-1/2 year high
    * Euro hits 1-month high versus yen, Nowotny's comments help

    By Gertrude Chavez-Dreyfuss
    NEW YORK, Aug 23 (Reuters) - The dollar rose against a
basket of currencies on Friday, climbing to a three-week peak
versus the yen on Friday, helped by the rise in U.S. bond yields
this week on expectations the Federal Reserve will reduce its
asset-buying program next month.
    The euro, meanwhile, rose against most currencies in the
wake of comments by European Central Bank policymaker Ewald
Nowotny, who said he did not see much reason for the ECB to cut
interest rates. He spoke after surveys showed euro zone activity
picking up at a faster pace. 
    The dollar rose 0.3 percent to 99.02 yen, having hit
a three-week high of 99.15 yen on the Reuters trading platform.
    The gap between two-year U.S. Treasury yields and
their Japanese counterparts moved to its widest 
since March 2012 and should encourage more Japanese investors
into U.S. Treasuries, analysts said. 
    Against a basket of six major currencies, the dollar was up
0.1 percent at 81.579.
    Sebastien Galy, currency strategist at Societe Generale in
New York said "there has been a tick-by-tick correlation between
dollar/yen and U.S. bond yields, which has certainly supported
that pair."
    The yield on the U.S. 10-year note was 2.8920
percent on Friday, not far from the two-year high of 2.9360
percent hit on Thursday.
    Barclays Capital is forecasting 10-year U.S. yields to rise
to 3.75 percent by the end of the third quarter of 2014.
    Galy said the market consensus right now is for a Fed
tapering in September and a reduction of about $20 billion. But
Galy said Societe Generale expects the Fed to go slow and start
with a $10 billion reduction in asset purchases.
    "There is no be reason to be aggressive at the beginning of
tapering. It makes more sense to wait it out and see the impact
on the market," said Galy.
    The euro was little changed against the dollar at $1.3353
, but was well-bid against other major currencies. 
    Europe's common currency was up 0.2 percent against the yen
at 132.15, after touching a one-month high of 132.42.
It rose 0.2 percent against the Swiss franc to 1.2352 francs
 and drifted up 0.1 percent versus sterling at 85.82
    "The euro seems irrepressible at the moment, but we think
the Fed normalisation story will win out for the dollar," said
Chris Turner, head of currency strategy at ING.
    The euro had set a six-month high of $1.3453 earlier this
week, supported by a recent improvement in euro zone economic
data. A second reading of German gross domestic product data
confirmed that Europe's biggest economy grew by 0.7 percent in
the second quarter, helped by domestic demand. 
    The recent pick-up has pushed euro zone money market rates
higher and if sustained is likely to challenge the effectiveness
of the ECB's pledge to keep rates low until a full-fledged
recovery is in place. 
    Also, as the Jackson Hole symposium kicked off, the focus
will be on influential Federal Reserve Vice Chair and policy
dove Janet Yellen, who is scheduled to speak on Saturday.

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