The US dollar headed to its highest level in two and a half months, as the increase in US Treasury bond yields worried investors in the stock market.
According to ArabiaNet, the US currency fell 4% in the last quarter of 2020, but it has risen more than 2.4% since the beginning of the year in front of its competitors, as investors expect that higher US bond yields will put pressure on higher stock valuations and increase the currency's temptation.
UBS analysts said in a daily note that higher US revenues add to stock market turmoil and strengthen the US dollar .. The Fed is still adopting monetary easing, but its Chairman Jerome Powell has decided not to criticize the rise in returns, which gives the dollar additional support in the short term.
However, yield trends diverged in the major markets.
While US bond yields increased 10 basis points last week, yields in Germany fell by about 5 basis points, bringing the euro to near its lowest level in four months, below $ 1.19.
The US Senate approved a $ 1.9 trillion bailout plan a day after a US jobs report raised the dollar to its highest level since November 2020.
The dollar index scored 92.186 against a basket of six currencies, up 0.3% and close to the late November peak of 92.201 recorded on Friday.
The Australian dollar rose 0.2% to $ 0.76996, but remains well below its peak of $ 0.77230. The New Zealand dollar fell about 0.1%, after increasing 0.4% to $ 0.719.
The dollar settled near its highest level in a year against the pound sterling at $ 1.3819, and stabilized against the low-yielding yen at 108.46 yen after hitting a nine-month high of 108.645 on Friday.
