Sharjah24 – Reuters: The dollar hit a three-week high against the yen in early trade on Thursday and held its gains against other majors, supported by this week's advances in U.S. Treasury yields, which hit two-week peaks overnight.
The dollar rose as far as 130.23 yen, its highest since May 11, extending Wednesday's 1.1% gain and heading back towards its 20-year peak of 131.34 hit in May.
The euro EUR= was at $1.0653, having fallen 0.81% to a 10-day low overnight, and sterling GBP=D3 was at $1.247 after losing 0.96% on Wednesday. This left the dollar index =USD on the front foot at 102.53.
The U.S. benchmark 10-year yield US10YT=RR hit a two-week high of 2.951% on Wednesday after data showed U.S. manufacturing activity had picked up in May as demand for goods remained strong, which could allay fears of an imminent recession. Read full story
U.S. job openings also remained at high levels. Read full story
Yields have been rising as the U.S. Federal Reserve has raised interest rates quickly in an attempt to bring red hot inflation under control while hoping to avoid pushing the economy into recession.
This surge stopped last week after Atlanta Fed President Raphael Bostic raised the possibility of a pause in interest rate rises at the Fed's September meeting, depending on the inflation situation and the economic impact of higher rates.
The 10-year yield was last at 2.9168%.
Traders are looking to more U.S. employment data due later Thursday and to Friday's U.S. payroll data.
They are also starting to turn their minds towards next week's European Central Bank (ECB) policy meeting, at which the central bank is expected to give more details about its plans for rate increases.
Elsewhere, the Australian dollar was a touch softer at $0.7161, and bitcoin BTC=BTSP was trading around $29,800, having fallen overnight, unable to sustain its push above $30,000 earlier in the week.
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