The dollar edged up against a basket of major currencies on Tuesday (19th), breaking through 101 for the first time in two years during the session. With the Federal Reserve (Fed) determined to fight inflation and the Bank of Japan (BOJ) continuing to maintain ultra-easy monetary policy,Japanese YenThe devaluation continued, and it once depreciated below 128 Japanese YenAgainst the $1 price, and headed towards the 129 mark.
ICE, which tracks the dollar against a basket of major currencies, late in New York US dollar index (DXY) rose 0.21% to 100.99, the highest intraday high of 101.3, the first time since March 2020 that it exceeded the 101 price.
U.S. Treasury yields continued to rise.U.S. 10-year Treasury yieldIt touched as high as 2.944% on Tuesday, the highest since December 2018, and the 10-year inflation-resistant bond (TIPS) yield rose to -0.01%, fairly close to positive territory, for the first time in two years.
Chicago Fed President Charles Evans expects the Federal Reserve to raise its interest rate target range to 2.25% to 2.5%, the neutral level expected by most central bankers, by the end of the year. Two 50 basis point hikes this year are appropriate.
dollar againstJapanese Yenup 1.45% to 128.91 Japanese Yen, the highest since May 2002.So far this month, the U.S. dollar hasJapanese YenIt has appreciated about 6% and is on track for its biggest monthly gain since 2016.
With Japan’s terms of trade deteriorating, raw material prices pushing up import costs, and the U.S. and Japan’s disparate inflation outlook, Morgan Stanley’s latest research noteJapanese YenDepreciation against the dollar is justified.
Japanese Finance Minister Shunichi SuzukiJapanese YenThe slump issued a clear warning, saying that the currentJapanese YenDevaluation does more harm than good to the economy.
Richard Benson, co-chief investment officer at Millennium Global Investments, said the BOJ is doing the opposite of normalizing monetary policy.He believes that the Bank of Japan can be supported by foreign exchange intervention.Japanese Yenbut the point is not toJapanese Yenpushed up to a certain level.
“I wouldn’t be surprised that central banks intervene because they have a lot of dollars and they can sell them easily, and while there are clear numbers and levels to discuss, the focus is on the pace of intervention, not the level, and slow and gradual is appropriate,” Benson said. .”
offshoreRMBAgainst the dollar, it fell as much as 0.7% to 6.4239 RMBAgainst the US dollar, it was the lowest since October last year, mainly due to the pressure of soaring US bond yields and the market’s worries about China’s economic growth prospects.
China announced 23 policy measures on Monday (18th), including increasing loan financing and postponing repayment dates, to provide financial support to companies and people hit by the epidemic.
Simon Harvey, head of currency analysis at Monex Europe, sees this as the strongest signal yet from Beijing that they are concerned about the state of economic growth, which, when combined with the impact of the authorities’ tightening regulation of the tech sector, will be accompanied by concerns about domestic growth. Sentiment has intensified, and China’s asset returns may not perform well this year.RMBToday’s trend reflects this.
EURAgainst the dollar, it edged up 0.06% to $1.0784, recovering some losses, but gains were still limited by U.S. Treasury yields, with the International Monetary Fund (IMF) onEURA pessimistic assessment of the district’s economic growth prospects this year may also be suppressingEUROne of the reasons for the rise.
The IMF, citing the impact of the Russian-Ukrainian war on manufacturing and energy prices, willEURThe region’s GDP growth forecast for this year was revised down to 2.8% from 3.9% previously, with Germany and Italy, which have large manufacturing scales and a high reliance on Russian energy imports, the most affected.
The dollar rose 0.7% to 0.9512 franc against the Swiss franc, the highest since June 2020.
As of Wednesday (20th) Taiwan time about 6:00 Price:
- US dollar indexReported at 100.9951. +0.1697%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $1.0786. +0.0742%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst $1.2993. -0.1230%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst $0.7373. +0.2993%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.2612 US dollar Canadian Dollars。+0.0238%
- dollar againstJapanese Yen (USD/JPY) exchange rate at 128.91 USD Japanese Yen。+1.4640%