The dollar held above a three-week low against major peers after Federal Reserve Vice Chairman Stanley Fischer became the latest policy maker to back the case for a year-end interest-rate increase.
The U.S. currency rose versus Australia’s dollar as Fischer echoed comments by William C. Dudley, Dennis Lockhart and John Williams, who have all said since a disappointing September payrolls report that they still see rates being raised this year. Two-year Treasury yields climbed last week by the most since August. The Aussie retreated after gaining last week by the most since December 2011.
The Bloomberg Dollar Spot Index, which measures the greenback’s performance against a basket of 10 major counterparts, was little changed at 1,191.09 as of 8:51 a.m. in Singapore from Friday, when it touched 1,190.72, the lowest since Sept. 18. The U.S. currency slid 0.1 percent to $1.1373 per euro. It bought 120.10 yen from 120.27. Against Australia’s dollar, it strengthened 0.1 percent to 73.30 U.S. cents.
Treasury two-year yields climbed six basis points in the five days to Oct. 9, the biggest weekly advance since August. At 0.64 percent, the yield is back near the level it traded at before an Oct. 2 report showed U.S. employers added fewer jobs in September than analysts had forecast.
Source : Bloomberg