© Archyde.com. US dollars in different denominations in a photo from the Archyde.com archive.
NEW YORK (Archyde.com) – The dollar rebounded from a two-week low on Wednesday as 10-year yields rose to a 14-year high, while the pound fell after higher-than-expected consumer price inflation in Britain heightened fears of a deepening recession. .
The dollar reached its highest level in 32 years against approaching the 150 barrier, which some traders believe that the Bank of Japan and the Ministry of Finance may intervene to buy the currency.
Treasury yields resumed their upward trajectory as investors maintained their expectations that the Federal Reserve would continue to aggressively raise interest rates to curb inflation, boosting demand for the US currency.
The US central bank is expected to raise interest rates by another 75 basis points when it meets on November 1 and 2, with the possibility of raising them again by 50 or 75 basis points in December.
It rose 0.88 percent against a basket of major currencies to 112.92. It fell 0.95% to $0.9771.
Sterling fell 1.02% to $1.1210 after data showed that annual consumer price inflation in Britain rose more than expected to 10.1 percent in September and returned to its highest level in 40 years recorded in July.
Investors expect the pound to remain under pressure amid expectations of rising inflation and recession in Britain, which could prompt the Bank of England to raise interest rates by 75 basis points instead of 100 at its November meeting.
And the dollar rose in the latest trading on Wednesday 0.43 percent to 149.87 yen.
(Prepared by Ahmed El-Sayed for the Arab Bulletin – Editing by Mustafa Saleh)