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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.
