Evergreen buck rallies to a 7-week maximum

Evergreen buck rallies to a 7-week maximum

On Wednesday, the US currency rallied and reached a maximum of seven weeks versus the group of other leading rivals due to the growth of yield of American government bonds. The yield of 10-year US bonds tacked on to a maximum since early 2014.

The US dollar index, appreciating the purchasing power of the US currency versus the trade-weighted basket of six key currencies, soared 0.31% ending up with 90.84. That’s the highest result since March 1.

The dollar's exchange rate has tacked on due to the surge in yields in American government bonds as well as the prospect of accelerating the Fed's interest rate increase in 2018.

A higher interest rate, as a rule, appears to be a support for the evergreen buck, as it makes dollar assets more attractive for profit-seeking investors. On Tuesday, the revenue of 10-year US government bonds managed to surpass 3% for the first time since 2014, which is a indication of investor confidence in the bright future of the American economy.

Published on Tuesday, data showed that the volume of construction of new homes and consumer confidence in the USA appeared to be better than analysts' estimates, which strengthened the forecasts of the stable surge of the American economy in the nearer future.

The Japanese yen headed south to a minimum against the evergreen buck for 2.5 months. The currency pair USD/JPY managed to tack on 0.38% coming up with 109.23.

On Tuesday, the evergreen buck headed south against the yen after a decline in quotations on US exchanges provoked a jump in demand for the Japanese currency. Yesterday's trading on Wall Street concluded with an abrupt dive in indices amid concerns of companies as for raising the cost of borrowed funds as a result of growing revenues of American bonds.


Will the CPI Crash the USD?
Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!

Latest news

Fed’s Rate Pause and UK Inflation Slows
Fed’s Rate Pause and UK Inflation Slows

Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera