The U.S. dollar rose against all other G-10 currencies, and market trading was active, as demand for risky assets weakened as the U.S. stock market fell from near record highs, and a commodity index had its biggest decline in two weeks. The U.S. dollar index rose by 0.37%, the largest increase since August 19; the U.S. dollar also benefited from the rise in U.S. bond yields. The U.S. government will issue new bonds this week, including $58 billion in three-year Treasury bonds and $38 billion.10 Annual Treasury Bonds and US$24 billion in 30-year Treasury Bonds.

CIBC’s Bipan Rai released a report on Tuesday, stating that the current macro narrative is turning towards people’s growing concern that while economic growth forecasts are being revised downwards, global monetary authorities are working to withdraw easing policies. This helps support the hedging theme. Will consider rebuilding long US dollar positions in the next few trading days.

The euro fell 0.25% to 1.1840 against the dollar; after the stop-loss selling order was triggered, it hovered around the key June level of 1.1848.

The dollar rose 0.38% to 110.28 against the yen; the momentum is expected to climb further above the July 23 high of 110.59, but New York traders pointed out that there is selling near 111.00; yen futures trading volume is the highest since March.

The pound fell 0.37% to 1.3786 against the dollar; the Bank of England policy committee member Michael Saunders said in a speech that if the benchmark interest rate does rise in the next year or so, the rate of increase may also be relatively limited.

The Canadian dollar is one of the currencies with the biggest decline today; the U.S. dollar rose 0.90% to 1.2647 against the Canadian dollar, the largest one-day gain since August 26. Economists expect that the Bank of Canada may raise interest rates by 0.25 percentage point at its policy meeting on Wednesday.

The Australian dollar fell 0.71% to 0.7386 against the US dollar, the lowest since August 19; the Australian dollar is one of the worst performing currencies among G-10 currencies, and the Reserve Bank of Australia hinted that the duration of its bond purchase program may be longer than expected. The New Zealand dollar fell 0.52% to 0.7099 against the US dollar.

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