Dollar on defensive as low U.S. yields boost risk sentiment

The dollar remained weak on Wednesday as Treasury yields retreated, easing pressure on global markets and boosting risk asset demand.

The dollar index was little changed in early Asian trade after dropping from a near one-month high overnight.

Prospects of a $1.9 trillion coronavirus package fueled traders’ expectations for a speedy economic recovery. 

The Aussie climbed 0.1% to $0.7824 after gaining 0.7% in the last two days. The krone was mostly flat after rising almost 2% in the last two sessions.

Lower U.S. yields boosted the yen and the Swiss franc from multi-month lows. The dollar rose 0.1% to 106.810 against the yen after falling from the 107-level overnight.