LOSANGELA, USA, 10 November – The U.S. dollar bounced back against major peers on Wednesday after weakening over the past three days with investors ramping up bets ahead of U.S. inflation data which could cause pressure on policymakers to raise interest rates from record lows.
A rebound of about three basis points to 1,486% for the 10 year government bond on Wednesday helped boost the currency.
The flattening fury in U.S. bond yields has been replaced by a mild rebound this morning before the U.S. CPI commented Kenneth Broux, an FX strategist at Societe Generale.
He said that the dollar was better bid after profit taking the last three days.
A poll analysts predicted the US consumer price index to come in at an annualised 4.3%, compared to the U.S Federal Reserve average annual 2% inflation target.
The Fed last week stated it was true that current high inflation is transitory but many investors fear that underestimating the rise in prices could be a costly policy mistake.
The dollar index, which measures the dollar against six rivals, rose by 0.33% to 94.279 at 1205 GMT after falling from a more than one-year peak of 94.634 reached on Friday.
The dollar rose 0.28% to 113.195 yen against Japan's yen, against Japan's yen.
The pound retreated 0.41% to $1.3505 last week after the Bank of England's surprise decision to keep rates unchanged, but stood well up Friday's more than one-month low of $1.3425.
The search for safer assets was fuelled by fears of potential contagion from China's property market woes, which led to a fear of potential contagion from China's property market woes.
The China's Evergrande faces a deadline on Wednesday to pay an offshore bond, and the Kaisa Group pleaded on Tuesday for help to pay loans, workers and suppliers.
The Aussie lost to a 0.07% fall, but it limited its losses to 0.22% to $0.73555. New Zealand's kiwi dropped by 0,54% to $0.7091.
The all-time high of $68,564. Incryptocurrencies, it hovered below the all-time high of $68,564. Last changing hands around $66,725. Ether stayed within sight of Tuesday's record peak of $4,842.