Dollar Extends Week’s Gains; Yen Leads Losses
A Bloomberg gauge of the dollar extended gains as long-end Treasury yields rose, propelling the US curve to its steepest level since 2022. The pound slipped after Bank of England officials held rates unchanged but signaled they will keep gradually easing, while the yen plunged following the Bank of Japan’s own meeting.
Bloomberg Dollar Spot Index gains 0.3%, up for a third day; gauge has climbed 2.3% so far in December.
Two-year Treasury yields traded more than 25bp below 10-year equivalent, a level last seen in June 2022.
GBP/USD down 0.2% to 1.2548, reversing earlier gains; BOE’s Monetary Policy Committee voted 6-3 in favor of holding benchmark rate steady versus cutting, a tighter vote than forecast.
USD/JPY gains as much as 1.9% to 157.81, extending Wednesday’s 0.9% climb; the BOJ kept its monetary policy settings steady, leaving its benchmark rate at around 0.25% and signaled it sees little urgency to raise rates for now.
EUR/USD gains 0.2% to 1.0372, trimming Wednesday’s losse.
Source: Bloomberg
