BEARISH CORRECTION IN DOLLAR BENEFITS PEERS

Published on Nov 20, 2023 16:55

A deep drag in the US dollar overseas is seen benefitting peers across the globe. Weakness in greenback amid easing US inflation that rose hopes that the Federal Reserve has reached the end of its tightening cycle is seen cheering risk appetite. The dollar index that measures the greenback against a basket of currencies is trading well below 104 mark and is down around 3% so far this month. Treasury yields have fallen sharply this month, with the benchmark 10-year note trading around 4.45% as against 4.95% at the end of October. Among the basket currencies, Euro that carries maximum weight gave up 0.3% at $1.0950. GBPUSD also lost around 0.3% at $1.25. Among the antipodeans, AUDUSD is quoting at a three month high of 0.655, up 0.7% whereas kiwi was trading higher by close to 1% at 0.6044. Meanwhile, Japanese yen hit over a five week high against the dollar amid weakness in the greenback. USDJPY pair plunged by nearly 1% below 149 mark. Chinese yuan also appreciated considerable to its highest level since August this year. USDCNY was quoting at 7.16, down 0.6%.