Economic news

Dollar grows against yen, worries that China stops buying US government bonds subside

The dollar inched up versus the yen today following foreign exchange regulator of China’s statement that alleviated worries relating to the possibility that China could lessen its purchases of US government bonds.

The US currency grew by 0.2% yesterday, reaching 111.70 yen, and leaving a minimum of the past 6 weeks behind.

A report that had come out some time ago telling that China was mulling over the reduction or cessation of buying US government bonds could have been relying on wrong information, foreign exchange regulator of China said

.American 10-year Treasury returns jumped to the highest levels in 10 months, while the dollar dropped after the Bloomberg News report.

Although soon after the China’s regulator made a statement today, the US currency and Treasuries got a bit of purchasing support.

The dollar grew slightly versus a basket of 6 currencies, that is 0.1% up to 92.396 .DXY, after a drop to 91.922 yesterday.

But there are analysts, who keep being watchful of the dollar’s short-term prospects.

Market mood is leaning toward the dollar’s downward movement, said Masashi Murata of Brown Brothers Harriman in Japan.


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