Yen skids to four-year low as stocks rally with Treasury yields | Malay Mail

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TOKYO, Oct 20 — US bonds drove currencies today, with a rise in long-term rates pushing the dollar to an almost four-year high on the yen, but a decline in shorter-dated yields putting it on the back foot against most other major peers. The dollar and yen were also under pressure from a global...

TOKYO, Oct 20 — US bonds drove currencies today, with a rise in long-term rates pushing the dollar to an almost four-year high on the yen, but a decline in shorter-dated yields putting it on the back foot against most other major peers.

However, two-year Treasury yields hovered around 0.4050 per cent after retreating sharply overnight from Monday’s 19-month high of 0.4480 per cent, signalling a scaling back of bets for early Federal Reserve interest rate hikes. At the same time, markets are coming to “the — highly belated — realisation that whether the Fed raises rate in 2022 or not until later, other central banks are getting in ahead of them ... with the Bank of England likely next cab off the rank as early as next month,” Attrill said.

Richmond Fed President Thomas Barkin said yesterday that US labour shortages may outlast the coronavirus pandemic and limit overall economic growth unless the country comes up with better education, health and childcare policies to boost the number of people willing and able to work. The risk-sensitive Australian dollar traded slightly weaker at US$0.74725, but remained close to yesterday's more than three-month top at US$0.74855.

 

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