Dollar hits 11-month high as U.S. bond yields jump
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
U.S. dollar notes are seen in this November 7, 2016 picture illustration. Picture taken November 7. REUTERS/Dado Ruvic/Illustration
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
By Richard Leong
NEW YORK (Reuters) - The dollar rose to an 11-month high against a basket of major currencies on Monday, in step with a jump in U.S. bond yields as traders bet fiscal and trade policies under a Donald Trump administration would stoke inflation.
Trump's stunning U.S. presidential win last week also sparked expectations of similar victories in Europe in the coming months. Worries over a rising tide of nationalist sentiment and restrictions on trade across Europe put pressure on the euro, analysts said.
"A lot of the move with the dollar has to do with higher yields," said Christopher Vecchio, currency analyst at FXCM in New York. "It's a seismic moment for markets."
The dollar index was 1.1 percent higher at 100.16 after touching 100.20 earlier Monday, which was its highest since Dec. 3, 2015. <.DXY>
The benchmark 10-year Treasury note yield rose to 2.26 percent early on Monday, its highest since early January, while a bond market gauge on investors' 10-year inflation expectations climbed to its highest level in over two years.
U.S. yields have lifted European and Japanese yields as those economies continue to struggle with weak growth and inflation. This could force the European Central Bank and Bank of Japan to stick to their ultra-loose monetary policies for a longer period, analysts said.
The euro shed 1.2 percent at $1.072 after hitting its lowest level against the greenback since Dec. 3, 2015, while the dollar gained 1.6 percent at 108.30 yen after rising to its strongest level since June 23.
The yield on 10-year German Bunds was 0.368 percent, the highest since late January, and the yield on 10-year Japanese government bonds was -0.016 percent, hovering at its highest level in two months.
The yuan has weakened on worries over Trump and the Republican-controlled Congress may slap tougher restrictions on Chinese imports.
The Chinese currency was down 0.5 percent against the dollar at 6.8596 yuan.
(Additional reporting by Patrick Graham in London; Editing by Dan Grebler)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fed's Williams says need to raise rates before economy overshoots
- ECB Leaves Rates Unchanged
- Senate confirms Kelly as Trump's Homeland Security secretary
Create E-mail Alert Related CategoriesForex, Reuters
Related EntitiesDonald J. Trump, European Central Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!