Today's Edition
(REUTERS)
The dollar rose from three-week lows against the euro and the Swiss franc on Wednesday as investors awaited US President Donald Trump’s speech at Davos, after his tariff threats triggered a broad selloff in US assets.
Growth will be the priority of the United States’ presidency of the Group of 20 industrialised nations, US Treasury Secretary Scott Bessent said on Wednesday, after urging European partners to hold off until President Trump addresses them.
The euro rose more than 1% in the last two sessions and was last down 0.15% at $1.1710 on Wednesday. It reached $1.1770 on Tuesday, its highest level since December 30.
The safe-haven Swiss franc fell 0.30% to 0.7922 per dollar, after gaining about 1.5% between Monday and Tuesday.
The yen has also been on the ropes after Japanese government bond yields jumped to record highs, as investors worried about fiscal largesse with Prime Minister Sanae Takaichi seeking to broaden her mandate in snap elections next month.
The dollar was steady against the Japanese currency, which faced its own selloff after Takaichi on Monday called snap elections for February 8 and pledged a series of measures to loosen fiscal policy.
The longest tenors of Japanese government bonds were hit hardest, with the 40-year yield spiking 27.5 basis points to a record-high 4.215% on Tuesday, although on Wednesday that eased slightly to 4.1%.
The yen traded at a record low of 200.19 per Swiss franc on Tuesday, and remained close to that level on Wednesday, changing hands at 199.21.
Japan's currency languished at 184.90 per euro, very close to the record low of 185.575 from a week ago.
The Bank of Japan is due to decide monetary policy on Friday, but after hiking interest rates at its previous meeting in January, no change is expected.
The Chinese yuan weakened 0.1% to 6.9659 per dollar in onshore trading, after hitting 6.9570 on Tuesday, the highest since May 2023.
Prior to Wednesday's opening, the People's Bank of China surprised markets by setting the midpoint rate at 7.0014 per dollar, 8 pips softer than the previous setting of 7.0006, in a move that some took as drawing a line at the psychologically significant 7 per dollar mark.
