Dollar boosted by hopes for U.S. pandemic recovery

The dollar held its ground on Thursday following back-to-back gains in two weeks as upbeat data lifted hopes for a faster U.S. pandemic recovery relative to its peers.

Investors expect a bigger boost from Biden’s planned $1.9 trillion coronavirus stimulus aid, with the president meeting with top labor leaders to ramp up support.

The dollar index traded at 90.943 in Asian trade after gaining 0.2% overnight. The index has climbed nearly 1% this year, bouncing from a near 7% drop in 2020 that extended to a 2 ½-year trough of 89.206 in January. 

The euro stood at $1.20385 after falling 0.5% overnight. The dollar was flat at 105.845 against the yen.

U.S. Treasury yields provided support for the dollar in recent days, with the 10-year yield climbing as high as 1.333% overnight. In Asian trade, it pulled back to 1.2669%.