Dollar firms amid U.S. yield surge
The dollar firmed on Monday after recovering from a one-week low last week, boosted by a surge in Treasury yields to more than one-year highs as inflation worries linger.
The greenback gained 0.1% to 109.125 against the Japanese yen, while the euro was mostly flat at $1.19485 after climbing last week, its first time in three weeks.
U.S. producer prices hit their highest annual gain in almost 2 ½ years, while the country is expected to receive support from Biden’s $1.9 trillion stimulus package.
The dollar index stood around 91.697 in Asian trade on Monday after rising from a near one-week low of 91.364 last week.
The 10-year Treasury yields traded at 1.6320% on Monday, near Friday’s top of 1.6420%. The Aussie dropped 0.2% to $0.77465, extending a 0.4% loss on Friday.
The Canadian dollar was mostly flat after earlier rising to C$1.2455 for the first time in three years. On Friday, a better-than-expected domestic jobs data supported prospects that Canada’s central bank will lower quantitative easing purchases next month.