October 18, 2018 / 1:43 PM / a month ago

FOREX-Higher Treasury yields boost dollar

    * Higher Treasury yields boost dollar
    * U.S. refrains from calling China a currency manipulator

 (New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
    By Karen Brettell
    NEW YORK, Oct 18 (Reuters) - The U.S. dollar index traded
near one-week highs on Thursday as Treasury yields edged higher,
after minutes from the Federal Reserve’s September meeting
showed that Fed policy makers are largely united on the need to
raise borrowing costs further.
    That came despite U.S. President Donald Trump's view that
interest rate hikes have already gone too far.   
    Benchmark 10-year Treasury yields have jumped to 3.21
percent, from around 3.17 percent before the minutes
of the U.S. central bank's Federal Open Market Committee (FOMC)
meeting were released on Wednesday, supporting a higher dollar.
    “The Treasury market leaked higher in yield yesterday
following the FOMC minutes, and that got a bit of attention,”
said Brian Daingerfield, a macro strategist at NatWest Markets
in Stamford, Connecticut.
    "For the broader dollar, the interplay is how does the
dollar trade relative to what’s going on interest rates and
what’s going on in the broader risk environment?” Daingerfield
said.
    The dollar index measuring the greenback against a basket of
currencies gained 0.14 percent on the day to 95.711, just
below a one-week high of 95.775 reached in overnight trading.
    China's currency traded near a three-month low
against the dollar at 6.9490 yuan per dollar, after a semiannual
report by the U.S. Treasury refrained from naming China a
currency manipulator but showed concern about yuan depreciation.
    "Of particular concern are China's lack of currency
transparency and the recent weakness in its currency," said
Treasury Secretary Steven Mnuchin.
    By stating that the Treasury will monitor and review the
yuan's moves over the coming six months, “the U.S. explicitly
noted that it stands ready to name China in its April 2019
report,” Citigroup analyst Calvin Tse said in a report.
    Deutsche Bank strategists termed the Treasury report "as a
bit of an escalation without being too dramatic."
    ========================================================
    Currency bid prices at 9:32AM (1332 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1494        $1.1499     -0.04%         -4.18%      +1.1527     +1.1482
 Dollar/Yen       JPY=        112.5300       112.6400    -0.10%         -0.12%      +112.7200   +112.4400
 Euro/Yen         EURJPY=     129.36         129.53      -0.13%         -4.31%      +129.7200   +129.1300
 Dollar/Swiss     CHF=        0.9959         0.9952      +0.07%         +2.22%      +0.9975     +0.9921
 Sterling/Dollar  GBP=        1.3100         1.3113      -0.10%         -3.05%      +1.3131     +1.3077
 Dollar/Canadian  CAD=        1.3040         1.3016      +0.18%         +3.68%      +1.3055     +1.3019
 Australian/Doll  AUD=        0.7128         0.7108      +0.28%         -8.63%      +0.7151     +0.7105
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1449         1.1444      +0.04%         -2.05%      +1.1466     +1.1428
 Euro/Sterling    EURGBP=     0.8772         0.8768      +0.05%         -1.24%      +0.8792     +0.8769
 NZ               NZD=        0.6559         0.6548      +0.17%         -7.44%      +0.6577     +0.6535
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.2250         8.2122      +0.16%         +0.22%      +8.2341     +8.2053
 Euro/Norway      EURNOK=     9.4569         9.4467      +0.11%         -3.98%      +9.4669     +9.4405
 Dollar/Sweden    SEK=        8.9950         8.9639      +0.31%         +9.67%      +8.9994     +8.9513
 Euro/Sweden      EURSEK=     10.3400        10.3077     +0.31%         +5.10%      +10.3432    +10.3054
 
 (Additional reporting by Saikat Chatterjee in London; editing
by Jonathan Oatis)
  
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