US Dollar Gains

The US dollar was in general strong on Wednesday, although the currency dropped in opposition to the Australian dollar and British pound, as Treasury prices pushed, sending yields up. Indeed, the yield on ten-year notes reached an intraday high of 3.99 %. This was the highest so far since October 2008 following the Bank of Russia first delegate chairman Alexei Ulyukayev stated that they would change some of their reserves from Treasuries to International Monetary Fund bonds. The statements reflect those of China, which has stated that it is enthusiastically considering purchasing as much as $50 billion of the IMF bonds, whilst Brazil’s Finance Minister Guido Mantega stated that they are going to buy $10 billion worth of IMF bonds.