Plus   Neg

U.S. Dollar Edges Higher After Seeing Weakness Overnight

After seeing some overnight weakness, the value of the U.S. dollar has edged higher over the course of trading on Tuesday.

The U.S. dollar index has inched up by 0.1 percent to 90.58 after falling to a low of 90.12 earlier in the day.

The greenback is trading at 106.00 yen versus the 105.38 yen it fetched on Monday. Against the euro, the dollar is trading at $1.2105 compared to yesterday's $1.2129.

The uptick by the dollar comes amid weakness among a jump in U.S. treasury yields, with the yield on the benchmark ten-year note surging up to its highest levels in almost a year.

Traders remain optimistic about additional stimulus from Washington, with Democrats continuing to move forward with President Joe Biden's proposed $1.9 trillion relief package.

Recent signs indicating the coronavirus crisis is easing following a recent surge also reduced the appeal of as bonds, as countries around the world continue to ramp up vaccine rollouts.

In U.S. economic news, the Federal Reserve Bank of New York released a report showing New York manufacturing activity grew at its fastest pace in months in February.

The New York Fed said its general business conditions index climbed to 12.1 in February from 3.5 in January, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 6.0.

With the much bigger than expected increase, the general business conditions index reached its highest level since hitting 17.0 last September.

A slew of economic data is due to be released in the comings days, including reports on retail sales, industrial production, housing starts, and existing home sales.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT