US dollar set a new highest record in six-year's script over Japanese Yen (JPY) on Wednesday, with Australian dollar (AUD) recording another session bulked with a big box of losses over rise in US treasury yields.
Forex traders are summing over the risk of trading in US currency trading coming out of US interest rate rise. Investors are reallocating their investments to USDs following Federal Reserve's report in the current weak citing higher determined recovery hiking the price of currency hitting new targets everyday.
With statements and publications from Fed, US treasury yields climbed up close to two year's highest heading to break three-year's highest record of 0.590 percent. High security long-term yielding US treasury rose more than 2.50 percent recovering from its recent fall at 2.30 percent rate. In Asian markets, it traded at 2.505 on Wednesday in early session.
USD backed up with positive cues from US treasury yields branded its value higher against most of the major currencies in the market. USD/JPY expanded to 106.56 breaking its six-year's highest record.
"Trader who did not hold their dollar stock lost out on big gains which will continue as Japanese yields fall further in near future," a forex researcher quoted from a renowned company in Tokyo.
Asian currencies fell against dollars and so did Australian dollar ratio with US dollar. AUD/USD lowered 0.4 percent down trading at 0.9162 in the market range today. Though, the ratio is posting a slim drop at 0.4 percent, in the overview of forex trade market AUD/USD gained momentum from its previous close at 0.9154.
Among domestic cues, Australian dollar commenced a climbing trend but paused on highest record gains in US. Australian forex expert said, "The trading level of AUD/USD broke its normal closing at 0.9175 as per estimates."
Similarly, European markets reported lower over gains in USD. EUR/USD plunged 14 months gains coming back to 1.2859 losing 0.1 percent from its last closing at 1.2925.
UK markets fought back US currency recovering from its disappointing beat down from the news of Scotland's independence. GBP/USD moved a notch up at 0.1 percent coming to 1.6115 coming back from its lifetime low at 1.6060 recorded yesterday.