Commodity News
HeadLine : Dollar Rebounds as Treasury Yields Rise
Date : Jan 12 2021
The dollar pushed higher Monday, rebounding from recent lows on the back of rising Treasury yields. The Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.3% at 90.335. USD/JPY was up 0.2% at 104.16, EUR/USD fell 0.3% to 1.2184, after climbing as high as 1.2349 last week. GBP/USD dropped 0.6% to 1.3487, while the risk-sensitive AUD/USD was down 0.8% at 0.7701. After a prolonged period of dollar weakness, investors are now betting on economic recovery spurring an uptick in inflation and an end to extreme accommodation by the Federal Reserve toward the end of the year.  President-elect Joe Biden has promised “trillions” in extra coronavirus-relief spending, much of which will be financed by additional borrowing.  The fact that the Democrats will be able to control both houses of Congress makes these promises more likely to be delivered, and this has resulted in the yield on benchmark 10-year U.S. debt rising more than 20 basis points to 1.12% this year, topping 1% for the first time since March. Also helping the dollar push higher is growing uncertainty over the length of time the Federal Reserve will keep its ultra-low interest rates policy in place.

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