Dollar drops with U.S. yields despite strengthening U.S. recovery

SourceZawya
SectorFinancial Markets
CountryMiddle east

TOKYO: The dollar sank to an almost two-week low versus a basket of its peers on Tuesday, moving in tandem with retreating Treasury yields from recent peaks despite signs of a robust U.S. economic recovery.The dollar index =USD wallowed at its lowest level since March 25, slipping further in early Asian trading following a 0.4% decline on Monday. The softer turn comes after it hit an almost five-month peak on Wednesday of last week.The Australian dollar AUD= , considered a proxy for risk appetite, edged higher to $0.7657 after rallying 0.8% to start the week. The Reserve Bank of Australia will announce a policy decision later on Tuesday, with no change expected.The greenback has risen strongly this year, along with Treasury yields, as investors bet on a faster U.S.

pandemic rebound than other developed nations amid massive stimulus and aggressive vaccinations.But the dollar’s drop this week even after Friday's much-stronger-than-expected monthly payrolls data was followed on Monday by the highest...read more...