The dollar rose to a nine-month high against a basket of major currencies on Monday, riding climbing U.S. yields and seen to be at the cusp of a renewed bull phase following Donald Trump's U.S. election win.
The dollar index was up 0.4 percent at 99.471 after touching 99.680, its highest since Jan. 29.
The greenback has soared on expectations that Trump's administration would boost spending and lift inflation, which spurred an elevation of Treasury yields.
The 10-year Treasury note yield rose to a 10-month high of 2.2 percent in Asia.
Bonds Plunge by $1 Trillion This Week as Trump Seen Game Changer
More than $1 trillion was wiped off the value of bonds around the world this week as U.S. President-elect Donald Trump’s policies are seen boosting spending and quickening inflation.
“We do view the election of Donald Trump as a game changer,” said Adam Donaldson, head of debt research at Sydney-based Commonwealth Bank of Australia. “The strong bias toward fiscal expansion and inflationary policy represents a stark change to the malaise of recent years. This opens the door for the Fed to hike in December, but also more quickly in 2017 and 2018 than previously expected.”
The market value of Bank of America’s Global Broad Market Index, which tracks more than 24,000 bonds around the world, has slumped by $1.14 trillion this week to $48.1 trillion. The only previous week it fell by more than $1 trillion was in June 2013, when the Federal Reserve under Chairman Ben Bernanke was threatening to reduce debt purchases, leading to a bond selloff that became known as the “Taper Tantrum.”
China Home Sales Value Rose 38% in October From Year Earlier
China’s new home sales growth slowed in October from a year earlier, suggesting the push by policy makers to rein in runaway prices is getting traction. The value of homes sold rose 38 percent to 941 billion yuan ($138 billion) last month from a year earlier, according to Bloomberg calculations based on data the National Bureau of Statistics released Monday. The increase compares with a 61 percent gain the previous month.
Local authorities in nearly two dozens cities have since late September rolled out property curbs ranging from raising down-payments for first and second homes to ruling some potential buyers ineligible.
BOJ's Kuroda warns of risks to hitting inflation goal
Bank of Japan Governor Haruhiko Kuroda said on Monday the economy is sustaining momentum towards hitting the central bank's 2percent inflation target but risks are tilted to the downside due to uncertainty over the global economy.
Kuroda maintained his optimistic view of Japan's economy, saying it is likely to expand moderately as exports and output rebound, reflecting an expected improvement in overseas demand.
But he acknowledged that private consumption was "somewhat lacking momentum" and making some companies hesitant of raising prices of their goods and services.
"The BOJ will pursue powerful monetary easing and make policy adjustments as appropriate, taking into account economic, price and financial developments, to maintain the momentum toward achieving 2 percent inflation," Kuroda said in prepared remarks to business leaders in Nagoya, central Japan.
Oil steady near multi-month lows on OPEC output record, U.S. rig count
Oil prices were little changed on Monday near multi-month lows, dragged down by worries about oversupply as OPEC saw record output last month and as the U.S. rig count rose again.
London Brent crude for January delivery LCOc1 was trading up 4 cents at $44.79 a barrel by 0630 GMT, after settling down $1.09 on Friday. The benchmark on Friday hit its lowest since Aug. 11 at $44.19.
NYMEX crude for December delivery CLc1 was down 4 cents at $43.37 a barrel. The contract closed down $1.25 on Friday after dropping as low as $43.03, its weakest since Sept. 20.
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