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NEW YORK (Reuters) - The U.S. dollar on Wednesday resumed its rebound from near three-week lows, rising broadly on hopes of higher government spending by President-elect Joe Biden’s incoming administration and an ongoing economic recovery from the coronavirus crisis.
FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration
A rise in U.S. Treasury yields, driven by expectations that Biden’s administration will ramp up spending, has helped boost the battered dollar in recent sessions, although it slumped on Tuesday.
The greenback has also found support from expectations of a continued economic recovery in the United States, even as countries in Europe resort to lockdowns to fend off a second COVID-19 wave.
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US stock futures rise and oil nears 1-year high as investors shrug off Donald Trump impeachment and cheer stimulus
US stock futures rise and oil nears 1-year high as investors shrug off Donald Trump impeachment and cheer stimulus
Harry RobertsonJan 13, 2021, 15:47 IST
Vice President Mike Pence signaled he would not seek to remove President Donald Trump from officeCarlos Barria/Reuters
US stock futures rose, as investors looked past the likely
impeachment of President Donald Trump towards the
stimulus expected under the administration of Joe Biden.
Oil prices rose again, approaching a 1-year high, as investors bet vaccines and stimulus would increase energy demand.
Stabilising U.S. Treasury yields helped the dollar trade back in positive territory on Wednesday, though investors remained bearish on the currency's near-term prospects.
FOREX-Dollar lifted as Treasury yields stabilise from drop Reuters 1/13/2021 Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Ritvik Carvalho
LONDON, Jan 13 (Reuters) - Stabilising U.S. Treasury yields helped the dollar trade back in positive territory on Wednesday, though investors remained bearish on the currency s near-term prospects.
Benchmark 10-year Treasury yields fell more than 6 basis points from a 10-month high hit on Tuesday, briefly snuffing out a three-day winning streak for the dollar. They last traded 2 basis points lower at 1.12%, helping the currency trade 0.1% higher against its peers.
The euro, having earlier made its sharpest daily gain against the greenback, lost ground to trade 0.3% lower on the day at $1.2168.