Currencies Overview: USD Down From Its Three-And-a-Half-Month High as Bond Yields Stabilize

The dollar fell from its highest in three and a half months today, Tuesday, as US Treasury yields stabilized, allowing gains for riskier currencies such as the British pound and the Australian and New Zealand dollars.

The index measuring the strength of the dollar against a basket of other currencies fell 0.2% in early London trade to 92.181, after reaching its highest level in three and a half months at 92.506 during Asian trading hours.

The 10-year US Treasury yield fell to 1.5350, extending its decline for a second day.

The Australian dollar rose 0.7% to $ 0.7695, and its New Zealand counterpart advanced 0.5%, recording $ 0.7149.

The euro rose 0.3% to $ 1.18845, and the pound rose 0.5% to $ 1.3886, taking advantage of the halting gains in the US currency.

The dollar has risen more than 2% since the beginning of the year, in light of rising bond yields thanks to optimistic economic data and an accommodative monetary policy.