Dollar steadies after hitting fresh 20-year high on yen
19 Apr 2022
Dollar Index is trading up 0.08% at 100.789
The dollar rose on Tuesday to a fresh 20-year high against the Japanese yen and tested a two-year peak against the euro, supported by high U.S. Treasury yields.
The dollar index, which measures the greenback against six other currencies, climbed past 101 for the first time in more than two years. It edged 0.07% lower at 100.74, down 0.1% at 0825 GMT.
The dollar’s gains have been most striking against the yen, climbing to its highest level of 128.32 yen against the Japanese currency since May 2002. It was last up 1.3% at 128.24 yen.
The dollar has risen 5.4% on the yen so far this month, which would be its second-biggest monthly percentage gain since 2016 after last month’s 5.8%.
The euro recovered some grounds, trading 0.25% higher against the dollar at $1.08095, but stayed just off last week’s two-year low of $1.0756.
The benchmark U.S. 10-year Treasury yield on Tuesday was just off its three-year high of 2.884% hit on Monday. Yields on 10-year U.S. inflation-linked bonds are within touching distance of turning positive for the first time in two years
On technical fronts Dollar Index RSI stood at 83.05 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss: