The US Dollar continued its recovery from its 3-year lows during trading today, after rising by 1.5% since last Friday. Although US bond yields rose to 4-years high near to 3% in the recent period, it didn’t provide sufficient support for the dollar and declined to its lowest levels. Currently, the dollar index is trading at 89.57 levels, its weekly high.
The rise in yields may be due to optimism that interest rates will continue to rise in faster pace and the US economy strong growth, but this is offset by concerns about inflation, which has triggered a massive sell-off of the US dollar and Treasury bonds. Also, markets concern about the US budget deficit which is expected to reach $ 1 trillion in 2019, weighed on US dollar.
The dollar rose against the Japanese yen to its highest level since Wednesday at 107.19 levels, while the euro fell against the dollar by 0.5% to reach levels of 1.2340.
GBPUSD also fell as markets awaited a number of UK economic data this week, led by labor market data and Bank of England members' testimony on the latest inflation report, which will help market speculation of a rate hike in May.
Earlier in the day, the Australian dollar fell against its US counterpart following the release of the latest Reserve Bank of Australia meeting minutes, which confirmed that the rise in the Australian dollar could affect economic growth and inflation, currently trading near its lowest level since February 14 at 0.7887 levels.
On the other hand, the digital currency Bitcoin continued to recover after declines that continued during the last two months, currently being traded at levels of 11,400 dollars, an important resistance level at the levels of $ 12,000.
