* Graphic: World FX charges https://tmsnrt.rs/2RBWI5EBy Saikat ChatterjeeLONDON, Feb 24 (Reuters) - The greenback remained at multi-year lows t
* Graphic: World FX charges https://tmsnrt.rs/2RBWI5E
By Saikat Chatterjee
LONDON, Feb 24 (Reuters) – The greenback remained at multi-year lows towards the Antipodean currencies and held close to a one-month low versus the euro as reflation trades gripped the forex markets on Wednesday.
Federal Reserve Chair Jerome Powell reiterated on Tuesday that U.S. rates of interest will stay low and the Fed will maintain shopping for bonds to help the U.S. economic system. The greenback resumed its decline in direction of the lows recorded in the beginning of the yr after a short rally in late January. flowed from protected havens just like the greenback, Swiss franc and the Japanese yen in direction of currencies anticipated to profit from a pick-up in world commerce, and to international locations like Britain which might be recovering shortly from the coronavirus pandemic.
“The extension of weak spot in protected haven currencies such because the Swiss franc seems according to constructing confidence within the world financial restoration,” MUFG strategists stated in a observe.
Some notable strikes have been seen within the forex markets this week. The franc weakened beneath 1.10 francs per euro for the primary time because the finish of 2019, with a worldwide rise in bond yields additionally curbing the attraction of the safe-haven currencies.
The greenback’s weak spot in latest days has been extra exceptional because it comes towards the backdrop of a broader rise in U.S. yields. Benchmark 10-year borrowing prices are holding close to their highest in almost a yr. US/
The =USD towards a basket of six main currencies was at 90.111, close to the six-week low of 89.941 it reached in a single day.
“Danger urge for food has improved lots, and this leaves the greenback at a giant drawback,” stated Junichi Ishikawa, overseas trade strategist at IG Securities.
The Australian greenback AUD=D3 , which tends to profit from rising metallic and vitality costs, rose to a three-year excessive of $0.7945 earlier than paring positive factors to commerce 0.1% stronger at $0.7914.
The euro EUR=D3 purchased $1.21495, near the one-month excessive of $1.2180 set in a single day. The British pound GBP=D3 climbed previous $1.42 in a single day for the primary time since April 2018.
https://tmsnrt.rs/2RBWI5E YTD FX efficiency
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