Dollar Nears 100, Yields and Safe Havens Hold G10
The US dollar index (DXY) strengthened by around 0.29% on Thursday (March 26th) to hover around 99.89, maintaining a close distance to the psychological 100 level as safe haven demand persisted amid inconsistent geopolitical signals from Iran's diplomatic path. The dollar also supported the wide yield differential, as markets tended to defer expectations of imminent Fed policy easing.
In Europe, the euro and sterling were held back by a combination of growth concerns and the sensitivity of inflation to energy. EUR/USD fell 0.25% and GBP/USD fell 0.31%, reflecting a defensive stance as activity data weakened and markets assessed that the European and British central banks' room for maneuver remained limited by energy inflation risks.
In Asia-Pacific and Switzerland, movements were largely determined by risk appetite and policy divergence. USD/JPY rose 0.20% as the yen struggled to offset the US yield advantage despite the Bank of Japan's gradual normalization path. AUD/USD fell 0.59% as a strong dollar and cautious global sentiment weighed on pro-cyclical currencies sensitive to growth and commodity prospects. USD/CHF rose 0.28%: the franc continues to function as a safe haven, but on risk-off days, the support of dollar yields often keeps USD/CHF bid.
Source: Newsmaker.id
