U.S. Dollar Jumps on Yield Play

The dollar strengthened on Tuesday on the back of broadly higher U.S. Treasury yields while the euro was buffeted by official comments and media reports on the progress of discussions over a new debt deal for Greece.

The euro sank below $1.13 in morning trade in Europe but it recovered almost half a cent around midday London time after a report said European officials would make a compromise proposal to give Athens another six months to negotiate.

The dollar’s resurgence provided the dominant tone after a quieter week of trading and overnight gains for commodity price-dependent currencies such as the Australian dollar and Norwegian crown.  “You’re just seeing a bit of dollar strength across the board,” said Peter Kinsella, a strategist with Commerzbank in London.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.