Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

FOREX-Dollar holds gains on inflation, kiwi boosted by reopening

Published 13/05/2021, 03:35
© Reuters.
US10YT=X
-

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Dollar stands tall after strong CPI print
* Traders shift focus on jobless claims and retail sales
* New Zealand dollar gains on reopening hopes

By Stanley White
TOKYO, May 13 (Reuters) - The dollar held gains on Thursday,
supported by higher Treasury yields after a bigger-than-expected
rise in U.S. consumer prices fanned fears about an increase in
inflationary pressure.
Traders will now turn attention to U.S. weekly jobless
claims due later on Thursday and retail sales numbers on Friday
for guidance on whether upward pressure on prices will persist.
The greenback is likely to continue to strengthen as some
investors unwind bearish bets, and re-position in anticipation
of sustained inflation as more economies emerge from the
coronavirus pandemic, analysts said.
"The move in the dollar was fuelled by the upward surprise
in consumer prices, but also because the market was caught on
the short side," said Shinichiro Kadota, foreign exchange
strategist at Barclays.
"This market is aware of the potential for further upside
surprises to inflation. This will support the dollar."
The dollar traded at 109.51 yen JPY=D3 , close to its
strongest level in five weeks.
Against the euro EUR=D3 , the dollar stood at $1.2084,
holding onto a 0.6% gain from the previous session.
The British pound GBP=D3 bought $1.4069.
The dollar also traded at 0.9081 Swiss franc CHF=EBS ,
close to a one-week high.
U.S. consumer prices increased by the most in nearly 12
years in April as booming demand amid a reopening economy pushed
against supply constraints, data on Wednesday
showed. Benchmark 10-year U.S. Treasury yields US10YT=RR rose to a
five-week high of 1.7040%, increasing the appeal of
dollar-denominated assets.
Signs of a stronger labour market and increased consumer
spending would offer more evidence that inflationary pressure
will pick up, which could push yields and the dollar even
higher, traders said.
The New Zealand dollar NZD=D3 edged up to $0.7175 after
Prime Minister Jacinda Ardern said she is exploring
quarantine-free travel with other countries as she plots a
course for re-opening the economy. The Australian dollar AUD=D3 followed the kiwi higher and
rose to $0.7735.
The onshore yuan CNY=CFXS traded at 6.4525 per dollar,
extending a pullback from an almost three-year high reached on
Monday as overseas-listed Chinese firms bought dollars for
dividend payments.

========================================================
Currency bid prices at 0233 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2083 $1.2071 +0.11% -1.10% +1.2089 +1.2070
Dollar/Yen JPY=EBS 109.5950 109.7050 -0.10% +6.11% +109.7750 +109.5000
Euro/Yen S>
Dollar/Swiss CHF=EBS 0.9083 0.9089 -0.06% +2.68% +0.9092 +0.9079
Sterling/Dollar GBP=D3 1.4065 1.4055 +0.07% +2.95% +1.4077 +1.4054
Dollar/Canadian CAD=D3 1.2112 1.2135 -0.18% -4.88% +1.2133 +1.2104
Aussie/Dollar AUD=D3 0.7732 0.7726 +0.08% +0.51% +0.7746 +0.7718
NZ NZD=D3 0.7169 0.7161 +0.13% -0.16% +0.7178 +0.7155
Dollar/Dollar


All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.