The dollar extended its rebound from near three-year lows versus major peers today, supported by higher U.S. yields.
The dollar index held onto gains made on Wednesday in early Asian trading as investors continued to unwind bearish bets. The dollar has risen in four of the past five trading sessions as the prospect of more stimulus has weighed on U.S. government bonds, sending the benchmark Treasury yield above 1% for the first time since March. FX speculators have been net short the dollar since mid-March, as investors’ surging appetite for riskier assets hurt demand for the greenback. The dollar index added 0.1% to 90.431 after gaining 0.3% overnight. It fell as low as 89.206 on Jan. 6 for the first time since March 2018. The euro slipped 0.1% to $1.21405 after sliding 0.4% on Wednesday. The greenback advanced 0.2% to 104.075 yen, adding to a 0.1% rise previously.
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