TOKYO, April 21 ― The dollar edged up today supported by expectations for aggressive Federal Reserve monetary tightening, but was well off the previous day's peaks amid nervousness about what a gathering of finance ministers might say about its rapid appreciation.
Also allowing the dollar to ease overnight, benchmark Treasury yields pulled back from the highest level since December 2018 at close to 3 per cent, as dip buyers emerged. Those yields, though, also inched higher in Tokyo trading today. San Francisco Fed President Mary Daly said yesterday she believed the case for a half-percentage-point rate hike next month is “complete” and “solid”, adding to recent comments from other Fed officials backing bigger rate increases.By contrast, the BoJ yesterday offered to buy unlimited amounts of 10-year Japanese government bonds for four consecutive sessions as yields bumped against the 0.
He is due to meet US Treasury Secretary Janet Yellen this week on the sidelines of the Group of 20 financial leaders' gathering in Washington DC, prompting traders to pare back bearish yen bets on the potential for stronger rhetoric on the currency.