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Dollar hit 2-month high helped by raising US Treasury yields

Discussion in 'Forex Daily News & Outlook' started by prav, Jun 11, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Dollar hit a two-month high against a basket of major currencies on Friday as rising yields added to US Treasury debt's advantage over other major government bonds, drawing buyers looking for higher returns. Benchmark Treasury yields moved as high as 5.24% last week, making US debt more attractive to US and foreign buyers. The surprise narrowing in the US trade deficit to $58.5B in April, from $62.4B confirmed that net external demand is likely to make a positive contribution to 2Q GDP growth. Bank of Japan will hold a policy meeting next Friday but is not expected to lift interest rates from their current 0.5%, the lowest level in the industrialized world.


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