The US dollar fell on Wednesday as investor sentiment improved and government bond yields
The US dollar fell on Wednesday as investor sentiment improved and government bond yields extended losses, while commodity-linked currencies, such as the Australian dollar and Canadian dollar, rose. Lower US bond yields also dampened the dollar’s appeal among low-yielding currencies.
With the Japanese yen and Swiss franc recovering from month-to-month lows the previous night. Bonds have taken center stage in the market in recent weeks, following a surge in yields globally.
Investors hope that the economic recovery will increase inflation and encourage a number of central banks to normalize monetary policy when the economy has recovered from the COVID-19 pandemic.
Global share prices are down from near record highs and commodity prices are faltering. But this week the market has calmed down, with bond yields falling and stock prices rising.
The dollar index against six other major peers slipped to 90.971 after falling back from a nearly one-month high last night. (henri/pn)