On Tuesday, the Dollar surged against the Japanese Yen and hit a one-month high of 111.99 lifted by Treasury Yields, which surged after US Treasury Secretary Steven Mnuchin commented on the possibility of an ultra-long-term bond issuance. Mnuchin reiterated his view in an interview with Bloomberg, saying that the government issuing debt exceeding 30-years in maturity “can absolutely make sense.” Meanwhile, the Federal Reserve is widely expected to keep interest rates unchanged at a two-day policy meeting that begins today, and investors will look to see whether the central bank downplays the recent soft patch in the economy to leave the door open for a rate increase in June.
On Monday, the Canadian Dollar weakened and hit a 14-month low of 1.3686 against the US Dollar as Oil prices, fell and investors braced for an interest rate decision from the US Federal Reserve. US Crude prices were down 0.81% at $48.93 a barrel as rising Oil output, Canada’s major exports and drilling in the United States countered Organization of the Petroleum Exporting Countries-led production cuts.
Meanwhile, on Tuesday as well, Gold prices steadied after falling 1% to a three-week low, on diminishing demand for safe-haven bullion as Asian equities rallied and the Dollar gained against the Yen. Worries about tensions over the Korean peninsula eased after US President Donald Trump on Monday opened the door to meeting North Korea’s Kim Jong Un, saying that he would be honored to meet the young leader under the right circumstances, even as Pyongyang suggested it would continue its nuclear weapons tests.