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The U.S. Dollar (USD) declined on Monday despite the rise in Treasury bond yields, amid expectations for economic recovery from the Coronavirus pandemic.
Expectations for a surge in inflation due to the easing policies of the Federal Reserve and the expected increased stimulus spending by the Biden administration are contributing to the fall of the USD.
The Dollar Index (DXY), which measures the performance of the USD against a basket of six major international currencies, is down by 0.31% at 90.08.
The index has been moving today in a range between 90.00 and 90.58, mostly in the negative territory, after closing last week at 90.36.
Since the beginning of February, the USD has declined, giving up almost all of its January gains, which followed a 7% annual loss in 2020.
Earlier today, data by the Federal Reserve Bank of Dallas showed that the production index of the Texas Manufacturing Outlook Survey rose to 25.5 in February from 7.2 in January, with other indices pointing to strong acceleration in the expansion of business activity.
In addition, positive economic data in Europe contributed to the rise of the Euro and the British Pound, extending the losses of the greenback.
