American Dollar Buying Rate Profits Off of Treasury Yield Gains

US Treasury yields have seemingly done well recently, being a good bet for a safe haven. 1-year Treasury yields have gone up as high as 4.9%, possibly reaching 5.0% soon. This is likely primarily due to anticipation over the Fed’s oncoming speech. This could then push up interest rates, but no one is certain yet due to low inflation. This has all helped push the dollar buying rate up and has reached a strong point this Thursday.

The performance of the dollar against several currencies has been strong. The US currency has been especially strong against the New Zealand dollar. The NZD/USD rate currently stands at $0.58.

At the same time, the dollar’s strength is visible when it comes to the euro as well. The EUR/USD rate fell from its previous positive trajectory into a negative area. This Thursday morning, you can buy dollars at $1.055 against the euro, and it is currently trading in a tight range.

Meanwhile, we see a similar story with the British Sterling and the dollar buying rate. There was an initial upwards movement in the GBP/USD rate, outdoing the forecasts. It then dropped considerably lower. Now, on Thursday, the pair dropped to around $1.215.

Finally, we can have a look at the Japanese yen. Masato Kanda, an official representative of the Japanese Ministry of Finance, has made some statements on their official policy. They seem to plan to intervene in forex markets whenever it is necessary. However, they do not seem to desire to announce such interventions until after the fact. The USD/JPY rate has not moved in reaction to these statements so far. The best dollar exchange rate against the yen stood at 149.5 to the dollar, where it has stood for a while. The worry many have is that it may blow past the 150 point, a level traders will be looking for.