Yahoo Finance Dollar Drops Amid Sagging U.S. Yields
Investing.com - The dollar opened the week slipping against the other major currencies on Monday morning in Asia amid sagging U.S. 10-year Treasury yields. Markets also set eyes on the U.S. retail sales data on Tuesday and Japan’s GDP on Wednesday to look for more directional drivers.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.28, down 0.17% at 11:10AM ET (03:10 GMT). The greenback reached this year’s new high last Wednesday at 93.22, then lost its rally to drop to the 92 level on Monday. Its uptrend since mid-April is still intact, however.
Last Friday, the U.S. released softer than expected consumer inflation data that curbed expectations for a third rate hike by the Federal Reserve later this year. The news pressured United States 10-Year that had risen to above the 3% last week, widening the interest rate gap between the U.S. and other countries. However, with the yields dropping to 2.96%, the dollar also lost the support.
The USD/JPY pair lost 0.09% at 109.30. Investors will have more cues for the yen following Japan’s GDP on Wednesday and CPI data on Friday.
The AUD/USD pair added 0.24% at 0.7560. The Reserve Bank of Australia will release its meeting minutes on Tuesday, but markets expect little to be changed as the Bank has held on its dovish stance given Australian economic data continues to miss expectations.
In China, the People's Bank of China set the set the reference rate for the yuan against the dollar, the mid-point from which the currency is allowed to trade, at 6.3345 versus the previous day's 6.3524. The USD/CNY pair gained 0.06% to trade at 6.3379.
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