Dollar finds support over surge in U.S. bond yields
The Dollar found support on Wednesday as a surge in U.S. bond yields pushed the U.S. currency above the Japanese Yen, lifting hopes for a speedier economic recovery.
The yield on U.S. debt saw a sharp gain in two months just ahead of a massive $38 billion auction scheduled for later in the day, improving risk appetite for the Dollar.
The Dollar index held its ground at 93.654 after it had recently plummeted by 9% from March’s three-month high, with the 4% drop recorded in July alone.
The Greenback remained largely unchanged against the Euro, trading at $1.1740, while it also stood firm against the Australian Dollar, trading just below a one-week high at $0.7147.
Against the Japanese Yen, the Dollar gained 0.5% against the Japanese Yen, steadying at ¥106.53.
However, gains remained limited as investor concerns mounted over political delays in Washington for additional stimulus deals. Furthermore, the market was divided on whether the support for the Dollar signals a rebound or just a pause in its decline