U.S. dollar lost ground against most of its peers on Monday as the yield on treasury bonds dropped amid hopes the central bank will hold its easy monetary policy unchanged for now.
The yield on 10-year U.S. Treasury Note dropped to near 1.60% this morning. Traders looked ahead to some crucial economic data, including reports on retail sales, consumer confidence and personal income & spending, due this week.
On the stimulus front, the White House lowered its infrastructure bill to $1.7 trillion from $2.25 trillion by reducing spending on broadband, roads, bridges and major infrastructure projects.
Still, Senate Republicans did not consider the new proposal as a significant improvement from the original package.
The dollar index, which dropped to 89.76 around mid morning, recovered some lost ground subsequently, and was last seen at 89.84, down 0.2% from the previous close.
Against the Euro, the dollar weakened to $1.2231 before recovering to $1.2216, still down as much as 0.3% from Friday’s close.
The Pound Sterling was stronger against the dollar, fetching $1.4154 a unit, slightly up compared to previous close of $1.4150.
The Yen firmed up to 108.76, gaining 0.17%.
Against the Aussie, the dollar weakened to 0.7754 from 0.7732.
The Swiss franc strengthened to 0.8968 a dollar, gaining 0.12%. The Loonie firmed up to 1.2047 against the dollar, rising 0.16%, on higher crude oil prices.
The material has been provided by InstaForex Company – www.instaforex.com