Last week the New York financial market saw both interest rates and the dollar fall together, exhibiting volatility. U.S. Treasury yields had recorded a record high the previous day but then seemed to stay in the 4‑5% range after a rapid adjustment, though the short‑term trend was dampened. Along with this, the dollar index fell to 100.682, spreading a general weakness.
The market movements are linked to the recent policy announcement by the Fed. On the 16th, the benchmark rate was raised by 25 bp to 3.75–4.00%, after which the market reflected the possibility of further rate hikes. Accordingly, ten‑year Treasury yields tended to remain in the 5% range, influencing bond prices and currency rates.
Gold is a cash asset tied to the dollar; rising interest rates increase its cost. After the recent record high in ten‑year yields, gold fell about 2% weekly. Together with the U.S. inflation data showing stronger-than-expected recovery, investors have steered the market toward caution.
The dollar weakened alongside the decline in international prices. International prices dropped more than 2%, and the currency rate was 1,355.23 won versus a 9.99‑won fall from the previous day. This is not a short‑term dip in the dollar but rather a long‑term movement linked to interest‑rate volatility.
The bond market also moved in tandem with the dollar and Treasury yields. Gold recorded a 2% decline weekly, and rising rates increased demand for safe assets. Thus, together with U.S. inflation data, the financial market shows moderate fluctuation, and participants are preparing for further rate hikes.