Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Dollar Hits Three-Month High

By Sara Patterson
Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.

The dollar hit a three-month high against its major trading partners on Tuesday after the U.S. 10-year Treasury yield surpassed its four-year high on Monday, to 2.998 percent. The spike was prompted by concerns about the increasing government debt and rising oil prices which can have a direct impact on inflation. By Tuesday morning the 10-year bond yield had retreated slightly to 2.964 percent. Market analysts are concerned that this level had previously shaken the market and influenced risk appetite, though it should be noted that some analysts believe that 4 percent is closer to the ‘magic number’ at which bonds become more attractive than equities.

The rising bond yield has already harmed emerging market currencies and bond markets, especially Asian markets. Higher U.S. yields tend to pressure emerging market currencies that have account deficits, pressuring them to the downside.

The dollar index hit a high of 91.076 .DXY, it’s highest since mid-January, but was trading at 90.97 .DXY as of 3:25 HK/SIN. Despite the fluctuations, the index has remained range-bound in the 89-91 range and has been unable to breakthrough.

The greenback was trading at 108.86 against the yen, up 0.15 percent as traders fled the safe-haven currency as they gained confidence in the global economy and the easing geopolitical tensions between the U.S. and China. The break of the 108 level on Monday added momentum for the dollar and triggered an increase in buying interest.

The dollar traded at $1.2198 against the euro with the euro clawing its way back after falling to $1.2185, its lowest since March first.

Sara Patterson
About Sara Patterson
Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.
 

Most Visited Forex Broker Reviews