Dollar trades near two-week low as U.S. yields fall
Thursday,
08-Apr-2021
03:02 PM (IST)
The U.S. dollar traded near its lowest in more than two weeks versus major peers on Thursday, tracking Treasury yields lower, after minutes of the Federal Reserve’s March policy meeting offered no new catalysts to dictate market direction. Fed officials remained cautious about the risks of the pandemic - even as the U.S. recovery gathered steam amid massive stimulus - and committed to pouring on monetary policy support until a rebound was more secure, the minutes showed Wednesday. Fed Chair Jerome Powell will speak at a virtual International Monetary Fund conference later on Thursday. The dollar index which measures the U.S. currency against a basket of six currencies, edged lower to 92.30 in London trading, after dipping as low as 92.134 on Wednesday for the first time since March 23. The index rallied to an almost five-month high of 93.439 at the end of last month as the U.S. pandemic recovery outpaced that of most other developed nations, particularly in Europe. The benchmark 10-year Treasury yield was around 1.658% on Thursday, after dipping below 1.63% overnight. It hit 1.776% late last month, its highest in more than a year. The S&P 500 eked out a modest gain on Wednesday, moving mainly sideways since surging to a record high to start the week. The dollar weakened to 109.49 yen , consolidating after retreating from 110.97, its highest in more than a year, reached on March 31. The euro was almost unchanged from Wednesday at $1.1876, after rebounding from $1.1704, its lowest in almost five months, touched on March 31.
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