Currency markets subdued as oil shock lifts global yields
Markets are focused on US producer prices and inflation data ahead of next week's Federal Open Market Committee meeting.
Currency markets exhibited little movement on Thursday as traders monitored a spike in oil prices and rising global bond yields. The Hong Kong market saw China's offshore yuan remain unchanged at 6.705 per dollar, nearing its strongest level in four years. Meanwhile, the yen's surge paused as investors awaited key US inflation data.
Brent crude prices stayed above $100 a barrel, following a Wednesday record, due to a major escalation in attacks on shipping between Iran and the US. This energy-driven inflation pushed global bond yields higher, with 10-year Treasury yields reaching their highest since 2023, though a bond buyback program underperformed. The US dollar showed slight gains, with the euro and sterling remaining weaker.
The yen dipped slightly to 153.70, after trading in a tight range ahead of a potential Bank of Japan rate hike. Markets now focus on upcoming macro data, including the US inflation readings on Thursday and Friday, ahead of the Federal Reserve's meeting on September 15-16.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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