Dollar reaches five-week highs as rising yields attract investors.

Dollar reaches five-week highs as rising yields attract investors.

The dollar ran higher again this morning amid supply fears in commodity and equity markets, and as hawkish signals from central banks boost Treasury yields. Pressure on energy supplies persists with both  WTI and Brent oil trading higher. Markets will pay close attention to OPEC’s World Oil Outlook due out today. The dollar is higher versus all G-10 currencies as energy, risk-off trading, hawkish central banks and the US debt ceiling concern investors.

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  • FX Rates
    September 28, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar runs higher reaching five-week highs. US Treasury yields continue to rise with the 10-year firmly above the psychological 1.50% level, and two and five year instruments at the highest in 18 months. Yields ran higher following Fed comments last week that bond purchase tapering can begin as soon as November.

    Fed chair Powell and Treasury Secretary Yellen appear before the Senate today. Powell will reiterate expectations for inflation pressure to remain at high levels in the short term. Yellen will provide more information on a government debt default. 

    GBP
    Sterling fell to 10-week lows as the greenback pops on risk aversion, soaring energy prices and rising US yields.
    EUR

    The euro remained under pressure after ECB President Lagarde spoke at the annual European Central Bank forum today noting that the EU needs to continue an accommodative monetary stance and as risk aversion dominates FX markets.

    CAD

    The Canadian dollar remains buoyed by rising oil prices, but buying interest around the USD outweighed and the pair rose in the dollar’s favor.

    ASIA/PACIFIC

    USD/JPY climbed 0.5% above 111.50 – the weakest level for the yen in three months. Month-end flows are expected to be yen bearish as upward pressure on treasury yields will continue to provide lift for the cross. The Australian dollar also gave up 50 pips amid decreased risk appetite.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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