On Friday, the US dollar hits high against the major currencies such as euro and yen. It came into effect after the U.S. Treasury yields to its 7-year high record due to the impact of the government bond disturbance on investors.
The U.S. Treasury note i.e. 10-year old hits its highest records of 2011 after the economic data came out than the expected. The U.S. job data of the month of September is due later on today.
The dollar gained 0.1 percent against 114.04 yen while it reached its 11-year high to 114.55 yen in the previous session. If it goes above 114.735, then the dollar index which is marked as greenback against major peers would probably hit its highest record of 2017.
The senior strategist of Daiwa Securities, Yukio Ishizuki said that the dollar’s strength would be clearer if the economic data comes out strongly today. It is going to be a test for the dollar index against the yen to reach 115 yen level in this month, he pointed out.
The rise in the dollar-yen would also boost the dollar against the euro as to its $1.14 level. As of now, the euro has remained unchanged at $1.1515 far off from its six-week lows.
The common currency gained 0.55 percent on Thursday after recovering its previous losses of six sessions against the greenback in a row. The euro was 0.8 percent lower against the U.S. dollar in this month.
On Thursday, the bond yields of Eurozone government rose up sharply after the economic data hits its high due to the increased interest rates. So, hiking in rates has sent Treasury yields to its seven-year peaks.
The dollar index was flat at 95.781 against the major six currencies whereas, the pound was at $1.3021 after recovering from its earlier low of $1.2925.