Title: Dollar index passes 101 for first time in two years as yen slide continues

Apr 19, 2022 01:26AM ET

By: AnalysisWatch

The dollar index surpassed 101 for the first time since March 2020 on Tuesday as the dollar hit its latest 20-year high against the yen and tested a two-year high against the euro, supported by strong U.S. Treasury bond yields and expectations for good economic data.

The dollar index, which compares the greenback to six other currencies, was last trading at 100.99, up 0.2 percent from 101.02 in early trading. It has risen 2.6 percent so far this month.

The dollar's rise against the Japanese currency was most notable, rising 0.73% to 127.88 yen on Tuesday, its highest level since May 2002.

So far this month, the dollar has gained 4.5% against the yen, the second-largest percentage gain since 2016 after last month's 5.8%.

The 10-year U.S. Treasury bond yield was 2.8376 on Tuesday, just below Monday's three-year high of 2.884%, while the Bank of Japan intervened to keep the 10-year Japanese government bond yield at 0% and no higher than 0.25%.

Elsewhere, the dollar rose to 0.9466 Swiss francs, the highest level in a year, and also hit new highs against other major currencies.

The euro was at $1.0776, just below last week's two-year low of $1.0756, and the pound was at $1.3009, within sight of its 18-month low against the dollar of $1.2973, also reached last week.

European currencies were not helped by the latest fighting in Ukraine, which showed that Russia has launched an expected new offensive in the east of the country.

The Australian dollar rose 0.3 percent to $0.737 from Monday's monthly low, helped by the Reserve Bank of Australia's April meeting minutes released Tuesday, which showed the central bank would raise interest rates for the first time in more than a decade amid rising inflation.