The dollar climbed to a 14-year high on Tuesday as Federal Reserve Chair Janet Yellen's comments on jobs reinforced the notion of faster U.S. interest rate hikes next year than had been expected.
In light trading, the greenback strengthened against major currencies with the rise in U.S. Treasury yields after Yellen said on Monday that the U.S. labour sector was at its most robust in almost a decade, suggesting wage growth is picking up.
"It's a bit yield-driven, but flows are extremely light," said Ian Gordon, G10 currency strategist at Bank of America Merrill Lynch in New York.
The dollar index, which gauges the greenback's value against a basket of currencies, was up over 0.1 percent at 103.31 after hitting 103.65, its highest since December 2002.
The benchmark 10-year Treasury yield was up more than 2 basis points at 2.562 percent.
The dollar rally and bond market sell-off since the Nov. 8 U.S. election have also been stoked by bets that U.S. President-elect Donald Trump's administration would cut taxes and increase fiscal spending, which would result in higher U.S. growth and inflation.
http://www.reuters.com/article/us-global-forex-idUSKBN14901N?il=0
See what can happen when even the promise of not having an economy killing racist at the helm comes into focus?
Sorry, bed wetters, Trump's election was nothing short of a boon for this country.
In light trading, the greenback strengthened against major currencies with the rise in U.S. Treasury yields after Yellen said on Monday that the U.S. labour sector was at its most robust in almost a decade, suggesting wage growth is picking up.
"It's a bit yield-driven, but flows are extremely light," said Ian Gordon, G10 currency strategist at Bank of America Merrill Lynch in New York.
The dollar index, which gauges the greenback's value against a basket of currencies, was up over 0.1 percent at 103.31 after hitting 103.65, its highest since December 2002.
The benchmark 10-year Treasury yield was up more than 2 basis points at 2.562 percent.
The dollar rally and bond market sell-off since the Nov. 8 U.S. election have also been stoked by bets that U.S. President-elect Donald Trump's administration would cut taxes and increase fiscal spending, which would result in higher U.S. growth and inflation.
http://www.reuters.com/article/us-global-forex-idUSKBN14901N?il=0
See what can happen when even the promise of not having an economy killing racist at the helm comes into focus?
Sorry, bed wetters, Trump's election was nothing short of a boon for this country.
