U.S. Dollar Lower On Easing Inflation Concerns
June 10 2021 - 11:42PM
RTTF2
The U.S. dollar traded lower against its major counterparts in
the Asian session on Friday, along with U.S. treasury yields, as
U.S. inflation fears receded and investors bet that any shift in
ultra-accommodative policy is unlikely to happen soon.
Overnight data showed that U.S. consumer prices rose 5 percent
in May, the biggest annual since 2008 and more than economists had
expected.
But it reinforced hopes that rising price pressures will be
transitory and the central bank is unlikely to withdraw monetary
support any time soon.
Investors await the Federal Reserve's monetary policy meeting
next week for more clues about the state of the economy and policy
outlook.
U.S. treasury yields fell, with the benchmark yield on 10-year
note touching 1.43 percent. Yields move inversely to bond
prices.
The greenback weakened to 1.2193 against the euro, 1.2081
against the loonie and 0.7205 against the kiwi, off its early highs
of 1.2167, 1.2099 and 0.7180, respectively. The next likely support
for the greenback is seen around 1.24 against the euro, 1.19
against the loonie and 0.74 against the kiwi.
The greenback declined to a 9-day low of 0.7771 against the
aussie, 2-day lows of 0.8933 against the franc and 1.4185 against
the pound, after rising to 0.7745, 0.8950 and 1.4158, respectively
earlier in the session. The greenback is seen finding support
around 0.80 against the aussie, 0.86 against the franc and 1.45
against the pound.
The greenback held steady against the yen, after having dropped
to a 2-day low of 109.30 at the commencement of today's trading
session. The pair was worth 109.31 at yesterday's close.
The University of Michigan's U.S. preliminary consumer sentiment
index for June will be featured in the New York session.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Aug 2024 to Sep 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Sep 2023 to Sep 2024