7th June 2023 – (New York) The U.S. dollar strengthened on Tuesday, buoyed by underwhelming economic data from Europe and rising yields on U.S. Treasury bonds. The dollar index, which measures the greenback against six major currencies, rose 0.12 percent to 104.1263 in late trading.
Investors are expected to stay cautious in the lead-up to next week’s Federal Reserve policy meeting, which could afford markets some stability, according to Jeff Kilburg, the CEO of KKM Financial.
The yield on U.S. 2-year Treasury notes experienced modest growth on Tuesday, reaching a daily high of 4.562 percent. Meanwhile, German manufacturing orders declined 0.4 percent in April, and retail sales in the Eurozone remained stagnant in the second quarter, exacerbating fears of a potential recession later in the year.
The euro fell to its lowest level since 20th March, driven by weaker data that suggested a slowdown in Eurozone economic activity, said Monex USA, a provider of foreign exchange, risk management, and international payment solutions.
Although the U.K. Construction Purchasing Managers’ Index rose to 51.6 in May from April’s 51.1, many forecasters still anticipate that Britain will experience higher inflation and weaker growth for a more extended period than other countries.
Overall, in late New York trading, the euro was down to 1.0694 U.S. dollars from 1.0714 dollars in the previous session, while the British pound was down to 1.2430 U.S. dollars from 1.2433 dollars in the prior session. The U.S. dollar bought 139.6570 Japanese yen, higher than the 139.6130 Japanese yen of the previous session. The U.S. dollar was up to 0.9076 Swiss franc from 0.9057 Swiss franc, down to 1.3401 Canadian dollars from 1.3437 Canadian dollars, and was up to 10.9108 Swedish Krona from 10.8539 Swedish Krona.
