U.S. dollar rise one-year high above the yen
The U.S vaccines and the major stimulus package are apparently significant pioneers for backing the economy in the States. The dollars raised one-year high above the yen, expecting a strong recovery from the pandemic, lifting Treasury yields.
The 10-year Treasury yields rose to 14-month highs on Tuesday at 1.776%, witnessed moderate growth on the day at 1.727%.
Treasury yields reach new heights before President Joe Biden decides to outline how he intends to pay for a $3 trillion to $4 trillion infrastructure plan.
“U.S. economic optimism has been the biggest driver this whole time with the move from 89 in the dollar index to 93,” said Erik Nelson, macro strategist at Wells Fargo in New York.
“There is a bit of momentum behind the move. We have broken some key technical levels in some of the key currencies, including the dollar index,” he added. The dollar index has risen in five of the last six sessions.
