Dollar Gains against Peers as Fears over Ukraine Conflict Ease

0
116

Dollar Gains against Peers as Fears over Ukraine Conflict EaseThe dollar advanced against its peers after strong U.S. economic report and positive developments on the Ukraine crisis saw yields on Treasuries hit their highest in a month, raising the attractiveness of dollar-backed assets.

The Bloomberg Dollar Spot Index, which measures the greenback against 10 counterparts, was up 0.1 percent at 1,010.63 as of 12:54 p.m. in New York trade. The Reuters’ dollar index, which also analyzes the dollar against six peers, gained 0.04 percent to 79.835.

The dollar gained versus the yen following a report by Philadelphia’s Federal Reserve Bank that the state’s factory index rose to 16.6, up from 9 in March. The U.S. currency had earlier plunged after Federal Reserve Bank Chair Janet Yellen disclosed on Wednesday that she has a “continuing commitment” to ensure the U.S. economy recovers.

**relatedarticle**

“The dollar was boosted by the U.S. funding rates,” Daniel Katzive, the head of FX strategy for North America at BNP Paribas SA, told Bloomberg. “It’s back up where they were before Yellen’s speech.”

The dollar was boosted by a joint statement made by Ukraine, the United States, the European Union and Russia that called for cessation of violence in eastern Donetsk region of Ukraine. The dollar had earlier plunged as market fretted over the possibility of an all-out civil war in Ukraine.

Traders reacted to the statement by reducing their holdings of the safe-haven assets such as the Swiss franc and the Japanese yen, besides the U.S. Treasuries.

The Treasury 10-year note yields rose up to 0.09 percentage point, or nine basis points, to 2.72 percent, the biggest intraday advance in over a week (since March 19). To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com