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US dollar edges higher vs euro, yen

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The US dollar strengthened against the euro, pound and yen on Monday as US Treasury yields pushed higher on rising expectations of a rate rise by the Federal Reserve next week.

[NEW YORK] The US dollar strengthened against the euro, pound and yen on Monday as US Treasury yields pushed higher on rising expectations of a rate rise by the Federal Reserve next week.

But the gain was modest, suggesting some calming to trade after the huge swings that hit the market by surprise when the European Central Bank took steps to further ease monetary policy last week.

"Today, cooler heads have started to prevail as the divergence between US and EU monetary policies becomes even more pronounced and the euro-dollar once again feels the downward pull of fundamental flows," said Boris Schlossberg of BK Asset Management.

The trade is "starting to reflect the fundamental disparity in the monetary policies of the two largest central banks in the world," he added.

AFP

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