Currencies Overview: The US Dollar Near Its Lowest Level in Two Weeks

The dollar hovered near its lowest level in two weeks after the US Treasury bond yields retreated from their recent high levels, while market participants await the US Federal Reserve meeting minutes, which will be released later during the session, to determine the future course of the US currency.

The previous quarter witnessed a rapid jump in US Treasury yields and the strongest rise in the US dollar in years, thanks to growing expectations of accelerated economic growth and inflation in the United States, which may force the Federal Reserve to abandon its pledge to keep interest rates near zero until 2024.

The International Monetary Fund said yesterday that the unprecedented spending to combat the pandemic will push the global growth rate to 6% this year. But the bond market stabilized this week, and the yield on 10-year Treasury bonds reached 1.64%, down from a peak of 1.77% at the end of March.

The dollar recorded 92.368 against a basket of currencies, approaching its lowest level in two weeks, after retreating from its recent peak at 93.439, which it reached on March 30th.

The euro stabilized against the US currency at $1.18705, after recording a rise since the beginning of April. The Australian dollar fell 0.4% to $0.76385, while the New Zealand dollar lost 0.3%, stopping the upward trend in the two currencies during the past two weeks.

The Canadian dollar also fell, affected by the third wave of the Covid-19 pandemic in the country.