The dollar remained close to its highest level in 10 weeks against a basket of major currencies, and also close to its highest level since November against the yen, as Treasury yields rose to new highs for the post-financial crisis period today, Tuesday, amid speculation that US interest rates will remain high. longer.

China's central bank supported the yuan by setting a much stronger than expected daily official midpoint for the currency. The yuan was stable in early trade after coming under increasing pressure in the past weeks as investors lost patience with the slow response of Chinese monetary policy despite the slowing economy and the deterioration of the real estate sector.

The dollar index, which measures the performance of the US currency against six developed market currencies such as the yen and the euro, fell 0.1% to 103.24, but it remained not far from Friday's high of 103.68, which it has not seen since June 12.

Analyst opinions


Rising US long-term yields and the disappointing response by Chinese policymakers to persistent pressures in Chinese real estate and financial markets continue to provide an upward push for the US dollar, Westpac currency analyst Richard Franulovich wrote in a note.

As for the US Federal Reserve's speech, Jerome Powell, expected on Friday at the annual symposium in Jackson Hole, Wyoming, Franulovich said if Powell keeps the door open to raising rates... a new front of bullish trend for the US dollar could form.

Japanese Yen

Against the Japanese currency, the dollar fell 0.1% to 146.125 yen, after earlier rising to 146.425, bringing it close to Thursday's peak of 146.565, the highest since November 10.

The price of the dollar against the yen tends to be highly sensitive to changes in long-term US Treasury yields. The benchmark 10-year bond yield reached its highest level since November 2007 at 4.366% on Tuesday.

The euro rose 0.1% to $1.09055.

Chinese yuan


Meanwhile, China's central bank set the yuan's midpoint at 7.1992 per dollar on Tuesday, in an effort to put an end to the currency's slide after falling to a 9-and-a-half-month low of 7.349 in offshore trading last week.

The yuan witnessed a slight change in the latest transactions abroad, and it recorded 7.2872, after rising about 0.1% after the Chinese central bank's decision.

The Australian dollar was little changed and recorded $0.6413.