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15 May 2013
Forex Flash: Dollar Index pushes above 83.49 - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts note that the US dollar, as measured by the DXY index, appreciated above 83.494, the high seen on April 4.
They note that the close at 83.607 was the highest since last July and the aggressive ascent in the greenback started last week on May 9, the day USD/JPY broke above its psychological 100 level. Further, they add that USD/JPY closed at 102.35 yesterday. The team continue to write, “Apart from the weak yen, the greenback was also buoyed by renewed expectations for the Fed to taper asset purchases either later this year or in early 2014. The yield on 10-year US treasury bond rose sharply to 1.974% yesterday, its highest since mid-March,from its low of 1.6255% on May 2.” They feel that although the Fed inserted the line to “increase or reduce the pace of its purchases” into its FOMC statement at its last policy meeting on May 1, US jobs data have come in stronger-than-expected amidst Fed officials playing down earlier worries that inflation was “well below” the Fed’s 2% target.
They note that the close at 83.607 was the highest since last July and the aggressive ascent in the greenback started last week on May 9, the day USD/JPY broke above its psychological 100 level. Further, they add that USD/JPY closed at 102.35 yesterday. The team continue to write, “Apart from the weak yen, the greenback was also buoyed by renewed expectations for the Fed to taper asset purchases either later this year or in early 2014. The yield on 10-year US treasury bond rose sharply to 1.974% yesterday, its highest since mid-March,from its low of 1.6255% on May 2.” They feel that although the Fed inserted the line to “increase or reduce the pace of its purchases” into its FOMC statement at its last policy meeting on May 1, US jobs data have come in stronger-than-expected amidst Fed officials playing down earlier worries that inflation was “well below” the Fed’s 2% target.