The dollar fell yesterday as U.S. Treasury yields stopped rising after a spike of bulls, which gave equity markets an opportunity and helped the euro and pound catch their breath and recover after hitting lows. multi-year.
According to “Reuters”, the Aussie dollar was also surprising, as it fell about 1% after the country’s central bank surprised the markets by raising interest rates less than expected, before recovering and catching up. with a broad wave of recovery.
The euro was up 0.5% to $ 0.9876, after hitting a 20-year low of $ 0.9528 on September 26. The pound also climbed 0.6% to $ 1.1390, after hitting an all-time low of $ 1.0327 on the same day.
The yield on 10-year US Treasuries was 3.5677%, down sharply from last week when it briefly climbed above 4%.
Recent increases in US bond yields coupled with aggressive interest rate hikes by the Federal Reserve were among the factors behind the dollar’s recent gains.
In Asia the dollar changed little against the yen, settling at 144.7, remaining below the 145 yen, which it crossed briefly yesterday for the first time since the Japanese authorities intervened in support of its currency on 22 September. .
The Australian dollar was up 0.15% to $ 0.6525.
On Monday, the pound jumped against the dollar after Britain announced a plan to eliminate the country’s highest income tax rate and the dollar fell relative to other major currencies.
The pound rose against the dollar yesterday following reports that the plan was reversed, at the currency’s highest rate since Sept. 22, the day before UK Finance Minister Kwasi Quarting announced a new “growth plan” which cuts taxes and restrictions financed by the vast government’s indebtedness, which has sown the markets.
Gold prices also recorded their highest level in three weeks yesterday, motivating all precious metals to make gains, with yields on the dollar and US Treasury bills falling again after recording their highest levels in the past. years, which restored the attraction for the non-productive precious metal.
And gold rose in spot trades 2.5 percent to $ 1707.20 an ounce during yesterday’s trading, after previously hitting its highest level since September 13 at 1710.39. dollars.
And US gold futures rose 0.9% to $ 1717.60.
A falling dollar index makes gold less expensive for overseas buyers.
As for other precious metals, the price of silver in spot transactions jumped 1% to $ 20.96 an ounce, after hitting its highest level since June.
The price of palladium also jumped 4.2 percent, before registering a 3.3 percent rise in recent trade to $ 2,294.79, and platinum rose 1.2 percent to 912.85. dollars an ounce.
Gold was up more than 2% on Monday as dollar and US Treasury yields plummeted as a recent drop in the precious metal tempted investors to buy and silver leapt into what could be its largest daily earnings since late 2008.
US gold futures were up 1.8% to stand at $ 1,702.
Silver jumped 8.8% to $ 20.67 an ounce, the highest level since mid-August.
As for other precious metals, the price of palladium jumped 2.9% to $ 2219.83 and platinum nearly 5% to $ 901.52 an ounce on Monday’s deal.
Interestingly, Wall Street stocks closed trading yesterday with strong increases at the start of the last quarter of the turbulent year amid interest rate hikes, inflation hitting record highs and fears of slowing economic growth.
All major sectors listed on the Standard & Poor’s 500 index rose, led by the energy sector.
The three major Wall Street indices ended the third quarter of the year down on growing concerns that the US central bank’s ultra-tight monetary policy could push the economy into a recession.
European equities also rose on Monday with a positive start to the final quarter of this year as a series of gloomy data on economic activity allayed some concerns about the pace of monetary tightening by central banks to curb hyperinflation.
The Stoxx 600 has fallen nearly 20% so far this year in a region plagued by an energy crisis, which is worsening the Russian-Ukrainian conflict and by signs of financial tightening from the US Federal Reserve and major central banks, undermining the risk appetite of investors.
In addition, South Korean Finance Minister Cho Kyung-ho said yesterday that the government will implement appropriate precautionary measures, reviewing all available options based on possible scenarios of turmoil in financial and currency markets.
Zhou’s remarks came during a parliamentary review session of the Finance Ministry’s performance, expressing concern that the current turbulent market situation may continue for a long time, according to “German”.
Finally, the South Korean stock market witnessed turmoil with a sharp drop in the price of the South Korean won against the dollar, in light of fears of a global economic recession with the direction of the world’s largest central banks, with the exception of Japan and China, to exacerbate the monetary policy and raising interest rates at a rapid pace.
“High inflation caused by external factors has imposed hardship on ordinary citizens and the most vulnerable groups (South Koreans) and exacerbated volatility in money and foreign exchange markets. Fears of an economic slowdown have increased, with the momentum of exports and declining investments “. Cho said.
He explained that the government will take all necessary measures in a timely and preventive manner, carefully examining the market situation and all possible scenarios.
The minister also promised efforts to strengthen the financial situation and improve South Korea’s credit rating.
Meanwhile, the Philippine central bank has said it is taking steps to “address any turbulence” in the financial market, urging citizens not to take undue benefits from ongoing developments.
And the “Bloomberg” news agency reported yesterday that the “Central of the Philippines” said in an email: “I ask those who have the means not to take unfair advantage of changing market conditions.”
The Central Bank added: “This does not help the Philippine peso and it does not help the Filipinos.”
The Central Bank statement came at a time when the peso fell to an all-time low yesterday. The peso fell more than 13% this year as the US Federal Reserve’s interest rate hike took the dollar to unprecedented levels.
The Finnish currency fell 0.6% to 85.86 pesos per dollar during yesterday’s trading. The Philippine central bank has not provided details on the steps it is taking.