Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Dollar Maintains Gains Supported by Higher Treasury Yields


Thu 13 May 2021 | 03:24 AM
Taarek Refaat

The dollar maintained its gains on Thursday, buoyed by higher Treasury yields after a larger-than-expected rise in consumer prices, raising concerns about mounting inflationary pressures.

Traders will turn their attention to the weekly jobless claims in the US and the retail sales on Friday to determine whether consumer prices will continue to rise or not.

Analysts said the US currency is likely to continue rallying as some investors retreat from bearish bets on the currency and return to more sustainable inflation positions as more countries succeeded in over coming the coronavirus pandemic.

The dollar bought 109.55 yen, close to its strongest level in five weeks. Against the euro, the dollar settled at $1.2083, holding onto a 0.6% gain from the previous session. The British pound bought $1.4068. Moreover, the dollar also rose to 0.9083 Swiss francs, near a one-week high.

The dollar also rose 3 piastres against the Egyptian pound to 15.68.

Data on Wednesday showed consumer prices in the United States rose the most in nearly 12 years in April, as booming demand prompted a re-opening of the economy against supply restrictions.

The 10-year US Treasury yields rose to a five-week high of 1.7040%, adding to the appeal of owning dollar assets. Analysts said that signs of a stronger labor market and an increase in consumer spending will provide more evidence that inflationary pressures will rise, pushing the greenback higher.