By: Barbara Zigah
The U.S. Dollar continues to make gains in Asian trading, up against both the single currency Euro and the Japanese Yen as demand for the greenback grew on hedge fun buying. Analysts predict that the U.S. Dollar may see wider gains provided that the yields on 10-year Treasury Notes rises again. On Monday, the 10-year T-Note closed at 3.84%, the highest yield in more than four months, which prompted hedge fund buying of the U.S. currency. Market players see that positive news at proof that the American economy is on the road to recovery.
Trading continues to be somewhat subdued due to the holiday week, and in light trading the U.S. Dollar held steady at 91.73 Yen, while the Euro traded at $1.4367. The U.S. Dollar Index also saw small gains, moving to 77.712 .DXY, up from 77.625 .DXY. Despite the positive movements, analysts suggest that the Dollar’s recent upward trend is somewhat excessive, given that the unemployment rate in the U.S. is at an historic high and predict that when the majority of market players return after the holidays, the greenback will see a correction.
Rising U.S. Bond Yields help U.S. Currency versus Euro and Yen
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.