Dollar Higher, Yen Under Pressure as U.S. Yields Rise
By Peter Nurse
Investing.com – The dollar edged higher in early European trade Tuesday, boosted by rising U.S. Treasury yields as traders position for the Federal Reserve tapering its bond-buying program this year after last week’s policy-setting meeting.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 93.472, just under a one-month high.
USD/JPY rose 0.3% to 111.29, climbing to levels not seen since early July, GBP/USD traded largely flat at 1.3696, while the risk sensitive AUD/USD rose 0.1% to 0.7295. Data released earlier in the day showed that Australian retail sales contracted 1.7% month-on-month in August, hit by Covid-19 restrictions, but better than the 2.5% fall expected.
EUR/USD fell 0.1% to 1.1686, with traders having to balance the uncertainty surrounding Germany’s political climate following Sunday’s general election and an…
