Dollar scales new 2-decade high, sterling on the ropes again



By Rae Wee

SINGAPORE, Sept 28 (Reuters) -

The dollar hit a fresh two-decade peak against a basket of currencies on Wednesday on the back of rising Treasury yields, while sterling languished near a record low on concerns over Britain's radical tax cuts to spur growth.

The U.S. dollar index =USD hit a new high of 114.68 in Asia trade and was last up 0.42% at 114.62.

Meanwhile, benchmark U.S. 10-year Treasury yields US10YT=RR rose to 4% for the first time since 2010, topping at 4.004%. The two-year yields US2YT=RR stood at 4.2912%. US/

"It's a combination of the spillover from the UK... where the gilt yields have gone ballistic. And that has spilled over into other DM bond markets, so there's a bit of a ricochet effect," said Moh Siong Sim, a currency strategist at Bank of Singapore.

"And of course ... this is against the backdrop of a very determined message by the Fed to do whatever it takes to bring inflation down."

Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Federal Reserve Bank President Neel Kashkari had reiterated the Fed's hawkish stance overnight, with Evans saying that the central bank will need to raise interest rates to a range between 4.50% and 4.75%.

Sterling GBP=D3 was down nearly 1% to $1.0634, reversing a marginal 0.4% gain in the previous session and still nursing deep losses after its slide to an all-time low of $1.0327 at the start of the week.

Bank of England Chief Economist Huw Pill said overnight that the central bank is likely to deliver a "significant policy response" to finance minister Kwasi Kwarteng's huge tax cuts.

But he added that the central bank wants to wait until its next scheduled meeting in November before making its move, quashing market speculations of a potential inter-meeting interest rate hike.

"For the near-term I think sterling's going to remain pretty weak from here," said Carol Kong, senior associate for international economics and currency strategy at the Commonwealth Bank of Australia.

"It's basically a crisis of confidence. It'll be up to the UK government to resolve this ... rather than Bank of England."

The stronger dollar pushed other currencies to multi-year lows on Wednesday, with the Aussie AUD=D3 hitting a trough at $0.6389, its lowest since May 2020. The kiwi NZD=D3 lost about 1% to $0.55645, similarly its lowest since March 2020.

The Chinese offshore yuan CNH=D3 fell as far as 7.2349 per dollar, the lowest level since such data became available in 2011.

A source had told Reuters late on Tuesday that Chinese monetary authorities are asking local banks to revive a yuan fixing tool it abandoned two years ago as they seek to steer and defend the rapidly weakening currency.

Euro EUR=EBS lost 0.4% to $0.9555, not far off from its recent 20-year trough of $0.9528, with the latest flare-up in the euro zone's gas crisis adding to the gloomy outlook for the single currency.

Europe was on Tuesday investigating what Germany, Denmark and Sweden said were attacks which had caused major leaks into the Baltic Sea from two Russian gas pipelines at the centre of an energy standoff.

Elsewhere, the yen JPY=EBS last bought 144.68 per dollar, little helped by an intervention from Japan to prop up the fragile currency last week.

"What would really change the value of the yen will be if the BOJ gives up or resets their yield curve control policy," said Pablo Calderini, chief investment officer at hedge fund Graham Capital.

"As long as you keep a rate differential of 4%, it will be really hard to see a significant appreciation of the yen."



World FX rates Link



Reporting by Rae Wee; editing by Richard Pullin and Kim
Coghill

면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.