The dollar is stable against the euro after strengthening the day before

Investing.com – The US dollar against the euro is stable after a significant jump the day after the rise in US Treasury yields.

The US dollar is traditionally moving in the same direction with the interest rates of the US government securities. On Tuesday, the yield of 10-year US Treasuries rose above the 3% mark, to its highest level since 2011.

Support for the yields of US Treasury securities was reduced by the risk of escalating the trade dispute between the US and China in a trade war, said analyst Richard Herrick Perry.

“The difference in the interest rates of government securities affects the dynamics of currencies, and in this case, supported the strengthening of the dollar against the yen,” – quotes the expert MarketWatch.

On Wednesday, traders will follow the statistics on the US economy, including reports on housing construction and industrial production.

“On Tuesday, the economic statistics were taken positively, and they also increased the expectations of the tightening of the policy by the Federal Reserve, which led to an increase in the yield of government securities and the US dollar,” says Zhang-chan, senior economist at St.George Bank in Sydney.

As of 9:41 Moscow time, the euro/dollar pair is trading at $ 1.1834 compared to $ 1.1838 at the close of the previous session. The value of the US currency against the yen slightly decreased – to 110.28 yen against 110.35 yen the day before. The euro to the Japanese currency fell to 130.50 yen compared to 130.63 yen at the close.

On Tuesday, the dollar gained 0.7% against the euro and 0.6% against the yen. The ICE index, which tracks the fluctuations of the dollar against the six major world currencies, rose by 0.7%, which was the most significant jump in seven weeks, according to FactSet.