USD Is Strengthening Ahead Of Fed's Chair Jerome Powell Speech Virtually Tomorrow Morning In Asia

The US dollar is steady rising so as the U.S. Treasury yields, lending support ahead of a speech by Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies, as a renewed sense of calm in the Treasury market supported sentiment.

Jerome Powell to speak at 12:05 p.m. EST (01:05 hk/sg Friday) before a virtual Wall Street Journal Jobs Summit.

Powell’s comments will be closely watched to see if he expresses concern about a recent volatile selloff in Treasuries and if there is any change in his assessment of the economy. His remarks will be watched for any clues to a possible change in Fed language ahead of the March 16-17 policy meeting.  

The dollar may continue to rise against the yen as long as Treasury yields rise at a measured pace, but the greenback is likely to fall against currencies of major commodities exporters as more signs point to a rebound in the global economy.

The benchmark 10-year Treasury yield edged up to 1.4894% in Asian trading.

A chaotic selloff in Treasuries from the start of the year on concerns that massive government spending to support the global economy may drive up inflation culminated in 10-year yields rising to a one-year high of 1.6140% last week.

The move was so rapid that global stock markets fell and the dollar swooned against most currencies, but the greenback has since regained its composure as disorderly selling of Treasuries seems to have run its course, for now at least.

The dollar index against a basket of six major currencies stood at 91.026, holding onto a 0.32% gain from Wednesday.