The U.S. dollar index (DXY) climbed again on Thursday, breaking through a four-month high, reflecting lower risk appetite among investors.
The U.S. dollar index (DXY), which moves against six major currencies, rose about 0.4% to 92.849 points after lunch. The dollar has gained more than 3% so far this year.
After two consecutive months of weak demand for 7-year bond tenders, the U.S. pointer 10-year bond rose to 1.642% at one point and was at 1.630% in the afternoon.
The dollar strengthened again, indicating that investors ignored last week’s positive data of lower-than-expected U.S. initial jobless claims and President Joe Biden‘s talk of a stronger economy.
Mazen Issa, senior currency market analyst at TD Securities, said, “The dollar has been moving modestly higher over the past few days and the current view is skewed, with the dollar still high.”
Doubts about Europe’s extended embargo also weighed on the market. European leaders met to discuss how to increase vaccine supplies amid slow progress in vaccinating new crowns.
The euro was down 0.4% against the dollar at $1.1767. Analysts expect the euro may fall back to the $1.16 range against the dollar as Europe’s economic recovery lags behind that of the U.S.
The dollar was up 0.4% against the yen at 109.1500 yen.
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