The US dollar continued its strengthening momentum all the way into the European session, bringing it to a one -month high against most other major currencies.
Ahead of the release of US NFP data on Friday, investors remain optimistic about a more aggressive interest rate hike by the Federal Reserve (Fed).
The benchmark 10 -year U.S. bond yield also jumped past 2.5% giving further support to the U.S. dollar.
The expectation also boosted Japan’s 10 -year government bond (JGB) yield higher to a six -year high of 0.25% prompting intervention by the Central Bank of Japan (BOJ) announcing a surprise offer to buy unlimited JGB on Monday.
This pushed the yen to its latest low since August 2015 against the greenback.
The strengthening of the US dollar also added to the gloom in euro and pound trading during the European session.
As the USD surged higher, the Aussie dollar continued to strengthen to remain at a four -month high with support from rising Australian bond yields and the long -term impact of higher commodity prices.
Meanwhile in other developments, delegations from Ukraine and Russia are scheduled to meet in Istanbul, Turkey today to hold more talks.
According to a post revealed on David Arakhamia’s Facebook page on Sunday, a Ukrainian official said that delegates had decided to hold the round of talks in person.
