Dollar returns losses, Reuters shows modest gains after 10 years of TIPS auction

By Stephen Culp

NEW YORK (Reuters) – Dollars fluctuated, but remained flat on Thursday as the US Treasury’s upward earnings trajectory took a breather.

With the release of disappointing economic data that initially pushed the dollar down, the greenback reversed its losses after partially recovering the Treasury’s benchmark yields, which showed a smooth foreign demand for banknotes after a 10-year TIPS auction.

In the face of a basket of world currencies, the dollar rose 0.13% last time.

U.S. 10-year banknote yields stood at 1.8325%, the highest two-year high of 1.902% on Wednesday.

“Although yields are softer, they are still at high levels, and the dollar continues to receive support ahead of next week’s Fed meeting,” said senior market analyst Joe Manimbo. Western Union (NYSE 🙂 Business Solutions in Washington. “We have seen fluctuations and flows this month, but the underlying bases remain in favor of the dollar, as the Fed will take a more hawkisha political stance.”

The rise in benchmark yields has been driven by market expectations that the US Federal Reserve will tighten its monetary policy at a faster pace than previously anticipated. Fed fund futures rose in rate in March to a total of four in 2022.

The Central Bank’s Federal Open Market Committee (FOMC) is expected to convene its two-day monetary policy meeting on Tuesday, at the end of which market participants will closely monitor the tightening of the commission’s statement.

“Currencies are sticking to the range, awaiting central banks next week,” Manimbo said, adding that “market expectations have undoubtedly become too aggressive in terms of Fed policy.”

The euro was last at $ 1.1313, down from its previous high of $ 1.1369.

The pound was 0.03% higher at $ 1.3615 and the yen was nominally lower at $ 114.14.

It was up 0.41% to $ 0.7241, extending the previous day’s gains, and the Canadian dollar pushed back earlier gains to $ 1.2474 C $ compared to the US dollar.

The Norwegian krone has fallen after the central bank voted to keep interest rates at 0.5% and said interest rates were on the rise in March.

The krona fell 0.16% against the dollar.

Among cryptocurrencies, for the last time, bitcoin rose 3.0% to $ 42,916, while its smaller counterparts gained 4.3% to $ 3,215.

=============================================== === ======

Currency supply prices at 14:54 (1954 GMT)

Description RIC Latest US Close Pct Switch YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index

95.7160 95.6000 + 0.13% 0.055% +95.7400 +95.4170

Euro dollar

$ 1.1313 $ 1.1344 – 0.27% – 0.49% + $ 1.1369 + $ 1.1312

Dollar / Yen

114.1400 114.2100 – 0.10% – 0.80% +114.5400 +113.9800

Euro / Yen

129.13 129.67 – 0.42% – 0.91% +130.0800 +129.1300

Dollar / Switzerland

0.9171 0.9156 + 0.18% + 0.56% +0.9175 +0.9141

Pound sterling / dollar

$ 1.3615 $ 1.3613 +% 0.03 +% 0.69 + $ 1.3661 + $ 1.3599

Dollar / Canadian

1.2474 1.2516 – 0.33% – 1.33% +1.2516 + 1.2454

Aussie / Dollar

$ 0.7241 $ 0.7211 + 0.41% – $ 0.39 + $ 0.7276 + $ 0.7207

Euro / Switzerland

1.0373 1.0385 – 0.12% + 0.04% +1.0395 + 1.0373

Euro / Sterling

0.8308 0.8332 – 0.29% – 1.10% +0.8338 +0.8306

NZ

Dollar / Dollar $ 0.673 $ 0.6778 – 0.19% – 1.03% + $ 0.6806 + $ 0.6756

Dollar / Norway

8.7985 8.7745 + 0.16% – 0.24% + 8.8075 + 8.7465

Euro / Norway

9.9545 9.9580 – 0.04% – 0.58% +9.9881 +9.9214

Dollar / Sweden

9.1773 9.1118 + 0.43% + 1.77% +9.1784 +9.0878

Euro / Sweden

10.3811 10.3636 + 0.43% + 1.44% + 10.3844 + 10.3257