Dollar Steady Near Two-Week High On Recovery In Risk Appetite

www.oann.com | 6/22/2017 | Staff
ajoy26 (Posted by) Level 3
TOKYO (Reuters) – The dollar hovered near a two-week high against a basket of currencies on Monday, supported by a sustained recovery in investor risk appetite which nudged U.S. bond yields higher.

The dollar index, which measures its strength against a group of six major currencies, was steady at 96.315 after climbing to 96.394 percent on Friday, its strongest since Jan. 4.

Hopes - Thaw - US-China - Trade - Tensions

Hopes for a thaw in U.S.-China trade tensions, a more dovish-sounding Federal Reserve and optimism that Britain could avoid a “No-Deal” Brexit are some of the factors that have fanned the return in investor risk appetite, which went into a deep freeze in December amid a slide in global equity markets.

Along with a decline in Treasury yields earlier in the month which had accompanied the retreat in equities, the dollar index had slipped to a three-month low near 95.00 on Jan. 10.

Dollar - Index - Recovery - Track - Currency

“The dollar index is clearly on a recovery track. The currency was stuck in a downtrend at the start of January but is now being bought back against its peers such as the yen, euro, pound and the Aussie,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

“Whether the current ‘risk on’ supporting the dollar can continue will likely depend on how U.S. corporate...
(Excerpt) Read more at: www.oann.com
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