Dollar Higher As Yields Surge On Stimulus Prospects
The U.S. dollar was higher against its major counterparts in the
Asian session on Thursday, tracking an uptick in the U.S. Treasury
yields, as investors await the details of the stimulus plan to be
unveiled by President-elect Joe Biden to boost the economy.
The yield on 10-year U.S. Treasuries rose to 1.11 percent, while
the 2-year equivalent was up at 0.15 percent.
The package is expected to include $2,000 in stimulus checks,
funding to state and local governments and other emergency spending
Safe-haven bonds fell after CNN reported that Biden is mulling
huge spending package worth about $2 trillion.
Biden is set to announce the details of his plan later in the
Fed Chairman Jerome Powell will speak at 12:30 pm ET, with
investors awaiting any clues on tapering its asset purchase
The dollar rose to 1.3616 against the pound and held steady
thereafter. The pair had ended Wednesday's deals at 1.3631.
The greenback appreciated to a 2-day high of 0.8892 against the
franc, from Wednesday's close of 0.8874. The greenback is seen
finding resistance around the 0.90 level.
The greenback hit a 2-day high of 104.20 against the yen,
compared to Wednesday's closing quote of 103.87. The greenback is
likely to find resistance around the 106.00 level.
The U.S. currency reached as high as 1.2135 against the euro,
setting a 3-day peak. If the greenback continues its rise, 1.20 is
possibly seen as its next resistance level.
On the other hand, the greenback dropped against commodity
currencies. It edged down to 1.2679 versus the loonie, 0.7207
versus the kiwi and 0.7765 versus the aussie, from its early highs
of 1.2708, 0.7171 and 0.7729, respectively. The next possible
support for the greenback is seen around 1.25 versus the loonie,
0.74 versus the kiwi and 0.80 versus the aussie.
Looking ahead, the European Central Bank publishes the account
of the monetary policy meeting of the governing council held on
December 9 and 10 at 7.30 am ET.
In the New York session, U.S. weekly jobless claims for the week
ended January 9 and import and export prices for December are
scheduled for release.