{"id":109954,"date":"2021-03-18T20:03:00","date_gmt":"2021-03-18T20:03:00","guid":{"rendered":"https:\/\/fin2me.com\/?p=109954"},"modified":"2021-03-18T20:03:00","modified_gmt":"2021-03-18T20:03:00","slug":"u-s-dollar-rebounds-from-post-fed-weakness-lifted-by-higher-yields","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/u-s-dollar-rebounds-from-post-fed-weakness-lifted-by-higher-yields\/","title":{"rendered":"U.S. dollar rebounds from post-Fed weakness, lifted by higher yields"},"content":{"rendered":"

NEW YORK (Reuters) – The dollar climbed broadly on Thursday, as higher U.S. Treasury yields helped it retrace all its losses from the previous session following the Federal Reserve\u2019s pushback against market expectations of potential interest rate hikes.<\/p>

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS\/Dado Ruvic\/Illustration<\/figcaption>

The U.S. dollar index was 0.53% higher at 91.853, after falling 0.56% to a two-week low of 91.30 earlier in the session.<\/p>\n

The U.S. economy is heading for its strongest growth in nearly 40 years, even as central bank policymakers are pledging to keep their foot on the gas despite an expected surge of inflation, the Fed said on Wednesday.<\/p>\n

While inflation is expected to jump to 2.4% this year, above the central bank\u2019s 2% target, Fed Chair Jerome Powell said that is viewed as a temporary surge which will not change the Fed\u2019s pledge to keep its benchmark overnight interest rate near zero.<\/p>\n

\u201cMarkets are playing chicken with the Fed, betting that the central bank\u2019s reaction function will evolve once today\u2019s ultra-dovish policy stance succeeds in generating above-target inflation,\u201d said Karl Schamotta, chief market strategist at Cambridge Global Payments.<\/p>\n

\u201cTraders are essentially betting that Powell will succeed in proving himself wrong. This is tilting interest rate differentials in the dollar\u2019s favor and clobbering rate-sensitive currencies on a global basis,\u201d he added.<\/p>\n

Following the Fed\u2019s statement on Wednesday, the benchmark 10-year yield retreated from a 13-month high of 1.69% hit early on Wednesday. On Thursday, yield on the 10 year bond resumed its recent rally to hit a fresh 13-month peak of 1.754%.<\/p>\n

Graphic: Playing catch-up,<\/p>\n

Data showing the number of Americans filing new claims for unemployment benefits unexpectedly rose last week did little to shake yields and the dollar lower.<\/p>\n

Against the yen, the dollar gained 0.13% to 108.98 yen.<\/p>\n

A Nikkei report said the Bank of Japan (BOJ) was expected to slightly widen an implicit band in which it allows long-term interest rates to move around its 0% target.<\/p>\n

Elsewhere, Norway\u2019s crown reached its strongest against the euro in 13 months – 10.0223 crowns per euro – before erasing gains after Norway\u2019s central bank left its key interest rate unchanged at a record-low 0.0% on Thursday and shifted its forward guidance to signal that a rate increase may follow in the second half of this year.<\/p>\n

The euro was last up 0.5% at 10.1274 crowns.<\/p>\n

Sterling fell against the dollar as the Bank of England warned the outlook for Britain\u2019s recovery remained unclear, dampening some speculation the bank would signal a more confident outlook.<\/p>\n

The pound was 0.3% lower at $1.3930.<\/p>\n

In the cryptocurrency market, bitcoin fell 1.21 to $58,188.21, after earlier hitting $60,000 again.<\/p>\n

\u201cThe price reversal from $61,000…trapped a lot of the longs, which were subsequently liquidated as bitcoin slipped,\u201d said Pankaj Balani, chief executive officer at crypo derivatives platform Delta Exchange.<\/p>\n

\u201cThis move has spooked traders and triggered some profit-taking but it does not seem anything more than a short-term correction. Bitcoin remains bullish over a medium to a longer-term time frame.\u201d<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

NEW YORK (Reuters) – The dollar climbed broadly on Thursday, as higher U.S. Treasury yields helped it retrace all its losses from the previous session […]<\/p>\n","protected":false},"author":3,"featured_media":109953,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nU.S. dollar rebounds from post-Fed weakness, lifted by higher yields - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/u-s-dollar-rebounds-from-post-fed-weakness-lifted-by-higher-yields\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. dollar rebounds from post-Fed weakness, lifted by higher yields - Fin2me\" \/>\n<meta property=\"og:description\" content=\"NEW YORK (Reuters) – The dollar climbed broadly on Thursday, as higher U.S. Treasury yields helped it retrace all its losses from the previous session [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/u-s-dollar-rebounds-from-post-fed-weakness-lifted-by-higher-yields\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-18T20:03:00+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/03\/cnewsfotor132-3.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/u-s-dollar-rebounds-from-post-fed-weakness-lifted-by-higher-yields\/\",\"url\":\"https:\/\/fin2me.com\/markets\/u-s-dollar-rebounds-from-post-fed-weakness-lifted-by-higher-yields\/\",\"name\":\"U.S. dollar rebounds from post-Fed weakness, lifted by higher yields - 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