Dollar is recovering, supported by rising bond yields

The dollar stabilized on Wednesday after swinging amid bond market volatility in previous sessions, as investors focused on US economic indicators, Federal Reserve comments and corporate earnings in search of clues to the path of interest rates.

The dollar index, which measures the performance of the US currency against six other major currencies, rose 0.09 percent to 101.81 in Asian trading, after falling 0.36 percent on Tuesday when it reversed after rising 0.54 percent in the previous session. On Friday, the index fell to a one-year low of 100.78.

US Treasury bond yields for two years, which are highly sensitive to Federal Reserve expectations, hit their highest level in nearly a month at 4.231 percent at the close of trading on Tuesday and remained high in Tokyo trading on Wednesday.

The dollar rose against the yen 0.19% to 134.35 yen per dollar, after falling 0.29% on Tuesday.

St. Louis Federal Reserve Bank President James Bullard told Reuters in an interview that he tends to expect a 75 basis point rate hike, against a market trend of a 25 basis point increase next month, before a possible quarter-point cut of two times later this year. general.

By contrast, Atlanta Federal Reserve Bank President Rafael Bostick said in an interview with CNBC that he expected a single quarter-point increase, followed by a prolonged period of interest rate hikes.

The Australian dollar almost settled at $0.6730 on Wednesday, after rising 0.41% in the previous session.

The euro eased slightly to $1.0967, after rising 0.42 percent on Tuesday. The British pound also fell slightly to $1.2420, after rising 0.38 percent yesterday.

Last year, the dollar index hit a 16-month peak and reached a two-decade high of 114.78 at the end of September, before a sharp decline continued into early February.

It then rebounded after a banking crisis sparked fears of a global recession, and reached a three-month high in early March.