Dollar increases as more central banks become tough, lower government bonds challenge

TOKYO (Reuters) – The dollar rose on Thursday when many of its peers weakened after several central banks chose to switch to a bold political stance in the wake of worsening economic prospects.

The latest switch came from the Reserve Bank of New Zealand (RBNZ), which stunned Markets on Wednesday by To say the next move in betting is likely to be down, and join a growing list of central banks that had become tough.

The dollar index against a basket with six main currencies was 0.17 percent higher at 96 942 and led for its third day of gains.

With many of his counterparts in the defensive, the dollar has been able to brush away a decline by reference. US government bonds are down 15 months.

"The Treasury yields are actually lower. But this does not affect the dollar as much as government bonds are still at attractive levels relative to those in the Eurozone and now New Zealand, which has just become stupid," said Takuya Kanda, Gaitame's CEO. .Com Research Institute.

"So there are currencies like the euro that are being pulled down by negative German interest rates, and the New Zealand dollar, which suffers from losses and causes the dollar to rise."

The euro was a hit The only currency still lost 0.45 percent a week with the 10-year benchmark portfolio with a 2-1 / 2 year decline of minus 0.09 percent.

European Central Bank President Mario Draghi said that an interest rate increase could be further delayed.

Graphic: World FX interest rates in 2019 tmsnrtrsrs / 2egbfVh

Growth sensitive currencies have recently turned on rising risk to the world economy, highlighted by shakeout in am eric bond yields that signaled a future recession there.

The New Zealand Dollar was down 0.2 percent at $ 0.6786, ranging from the previous day's 1.6 percent slide.

The Australian dollar, which often moves in sympathy with the kiwi, went down 0.1 percent to $ 0.7077. The reserve bank in Australia had left its long-term tightening bias ahead of the month and markets are pricing in a cut this year.

Aussie had to throw nearly 0.7 percent on Wednesday along with the clinging kiwi.

Pounds lost 0.1 percent to $ 1.3172 after going as low as $ 1.3143 earlier on Thursday.

Sterling was at the back of the foot after an offer from UK Prime Minister Theresa May to stop getting his divorce from the EU, through parliament, failed to win over important opponents of the deal.

The dollar fell 0.15 percent to 110.34 yen, but managed to stay free of a six-week trough of 109.70 plumbed on Monday.

The 10-year US Treasury bond fell to 2.342 percent, the lowest since December 2017 on concerns about a global recession, and after RBNZ embraced a tough tone on interest rates. [19659000] [Denne historien ble refiled for å inkludere full tittel til høyttaler i avsnitt 5]