SINGAPORE/LONDON (Reuters) – The dollar is being supported by rising U.S. yields, while low-yielding currencies such as the yen, stuck at its lowest since 1986, are feeling the pressure.
Yields on the benchmark 10-year Treasury note rose nearly 14 basis points to 4.479% overnight, with analysts attributing the rise to expectations that Donald Trump will win the U.S. presidency, which in turn will lead to tariffs and higher borrowing costs.
While the dollar rose, the euro was down 0.2% at 1.0714 at 11:30 a.m. after giving up part of a small rally following the first-round result of the French elections, which was more or less in line with the polls.
The yen fell to 161.6 per dollar, its lowest level in nearly 38 years, extending a slide driven mainly by the wide gap in interest rates between the United States and Japan.
Against the euro, the yen is at 173.18 after hitting a record low of 173.67 yesterday.
The dollar index rose 0.09% to 105.993, with the spotlight on job opening data due later today and comments from Federal Reserve Chairman Jerome Powell when he takes the stage at the ECB forum in Portugal.
The pound fell 0.13% to $1.2630, its lowest since mid-May.
(Translated by Laura Contemori, edited by Cristina Carlevaro)
