Commodity News
HeadLine : Dollar Up, Boosted by U.S. Yields and Hopes For More Stimulus Measures
Date : Jan 11 2021
The dollar was up on Monday morning in Asia, continuing a rebound over big gains in U.S. yields and hopes for more U.S. stimulus measures that saw some investors tempering bearish bets and seeing the dollar move further away from the multi-year lows seen recently. The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.41% to 90.388. U.S. President-elect Joe Biden has promised “trillions” in extra COVID-19 relief spending as he and a Democrat-controlled Congress prepare to take office on Jan. 20. Biden’s promise pushed the yield on the benchmark 10-year U.S. debt up more than 20 basis points to 1.1187% in 2021 to date, in turn helping the dollar to a one-month high of 104.095 yen earlier in the day, with better rates giving pause to some dollar shorts. However, a crowded trade in bets against the dollar, alongside the selloff in the bond market since the Democrats won control of the Senate during the previous week’s runoff elections in Georgia, has slowed the greenback’s steep and steady decline since March 2020.

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