Dollar gains further as Treasury yields resume climb

Dollar gains further as Treasury yields resume climb

LONDON  - The dollar gained for a second consecutive session on Monday as rising U.S. Treasury yields forced traders to cut their bearish dollar bets to four-month lows.Benchmark 10-year Treasury yields were trading at 1.6320% on Monday, close to Friday's top of 1.6420%, a level last seen in February. Rising U.S. yields have lifted the greenback in recent weeks thanks to widening interest rate differentials relative to other major bond markets.The dollar index, which tracks the U.S. currency against six major peers, held at around 91.84 in early London trading on Monday. It hit a late November 2020 high of 92.51 last week.Rising bond yields will continue to dominate investors' minds this week before a Federal Reserve meeting at which some analysts expect policymakers to strike an optimistic tone on the U.S. economy."The Fed is not expected to tinker with its monetary policy but instead communicate via forecasts that the situation is under control and that markets are running way ahead of themselves," SEB analysts said in a note.U.S. producer prices increased strongly in February, leading to the largest annual gain in nearly 2-1/2 years, with the country's economy set for a massive shot in the arm from President Joe