AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,400 Increased By 213 (2.09%)
BR30 31,653 Increased By 316.8 (1.01%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

HONG KONG: The dollar hit a five-year high against the yen on Monday, as traders braced for the US Federal Reserve to begin hiking rates, while reckoning the Bank of Japan remains dovish.

Commodities and commodity currencies eased amid hopes for progress in Russia-Ukraine peace talks. Cryptocurrencies rose after Tesla boss Elon Musk said on Twitter that he owns and won’t sell ether, bitcoin and dogecoin.

The dollar touched 117.88 yen in Asia trade, its strongest since January 2017, at the start of a busy week of central bank meetings in the United States, Britain and Japan.

“The Ukraine conflict is not expected to prevent the BoE and Fed from raising rates in the week ahead while the BOJ stands pat,” said analysts at Japan’s MUFG Bank.

“Unless there is a significant de-escalation in the Ukraine conflict, the dollar should remain stronger.”

Futures are pricing in between six and seven US rate hikes of 25 basis points each this year, and six in Britain as the war in Ukraine adds to global inflationary pressures.

In contrast, the BOJ is set to remain dovish at its meeting this week as policymakers try to boost the country’s weak economic recovery from the pandemic.

A glimmer of hope for progress toward peace emerged after US Deputy Secretary of State Wendy Sherman said Russia showed signs it might be willing to have substantive negotiations over Ukraine, taking the edge off commodity currencies on Monday but sterling and the euro remain under pressure.

The Australian dollar was last down 0.5% at $0.7256 and the kiwi 0.2% lower at $0.6791. The euro was parked at $1.0915 while sterling slipped 0.2% to $1.3013, a 16-month low.

“With the UK more exposed to the Russian supply shock than the US, we think the risks lies with disappointment by the BoE and a weaker sterling down to $1.2894,” said Commonwealth Bank of Australia analysts.

The dollar index crept up to 99.214.

Pressure on bonds was unrelenting and the two-year Treasury yield, which moves with short-term interest rate expectations, hit a 2-1/2-year high at 1.8090% and benchmark 10-year rates rose to a one-month high of 2.06%.

Bitcoin caught a boost and rose 2% to $38,560, while ether was last up 2.2% at $2,573 after traders took a bullish cue from a series of tweets from Tesla’s Musk about high inflation.

“It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high,” Musk said.

“I still own and won’t sell my bitcoin, ethereum or doge.”

Comments

Comments are closed.