Dollar Recovers But Set for Worst Week Since August
A Bloomberg gauge of the dollar edged higher alongside Treasury yields but was still headed for its worst week in more than two months as trade risks, credit fears and expectations of Federal Reserve interest-rate cuts weigh on the US currency.
The Bloomberg Dollar Spot Index gains 0.1%; measure set for a 0.4% decline since Monday open, the worst week since early August.
Still, greenback reversed Asia, London session losses as bank stocks recover at US cash open; loan fraud disclosures by Zions.
Bancorp and Western Alliance Bancorp prompted steep selling Thursday.
US two-year yield rises some 3.5bp to 3.46% after touching lowest since 2022 earlier.
Elsewhere, President Donald Trump said threatened high tariffs on China were “not sustainable” — while CNBC reported that Treasury Secretary Scott Bessent will speak by phone today with Chinese Vice Premier He Lifeng to discuss ongoing US-China trade talks.
There’s been a flushing out of dollar longs, mainly in the yen and the euro, with stops filled another day, Europe-based traders say.
Yen surges as much as 0.7% in haven trade and breaks through 150 mark before erasing gains; USD/JPY is little changed at 150.55.
Traders are monitoring ongoing discussions between the ruling Liberal Democratic Party and the Japan Innovation Party to see if they can form a coalition.
Swiss franc also rallies on haven bid before paring gains.
USD/CHF slips 0.1% to 0.7923 and EUR/CHF is down 0.2% at 0.9249 after bouncing off key 0.9220 resistance.
EUR/USD slips 0.2% to 1.1665, reversing earlier gains.
Source : Bloomberg.com
