Currencies Overview: Dollar Drops to Its Lowest Level in Nearly 7 Weeks

The dollar fell to its lowest level in nearly seven weeks during the Asian session, while the euro rose as investors grew optimistic about the pace of vaccinations in Europe, and Treasury yields continued below the high levels recorded in March.

The dollar has fallen since the beginning of April, with US Treasury yields declining from the 14-month peak they touched last month. The decline is in contrast to what happened in the first quarter, when the dollar rose with the rise in US Treasury bond yields, which means higher yields for the US currency.

The dollar index fell 0.1% to 90.952 after hitting the highest level during the Asian session at 90.877.

The euro rose 0.3% to $1.2065, its highest level in seven weeks, after surpassing a key level of $1.20 in the previous session.

The economic recovery in the United States may raise inflation expectations, which fuels speculation of an interest rate increase,” she added. The news of Corona in the Eurozone may change again as the uncertainty remains intense. according to reuters

Against the yen, the dollar broke the 108 level overnight, before reversing its course, rising 0.3% during the session to 108.450.

The Australian dollar rose 0.7% to 0.7808, and the New Zealand dollar rose 0.6% to 0.7223.