DXY Extends Losses as Market Reacts to Data and Stimulus Bill

The U.S. Dollar (USD) declined on Thursday as the recent inflation data helped ease reflation fears, pushed down Treasury bond yields, and improved risk sentiment, which reflected positively on other currencies.

Market are reacting to the passing of the $1.9 trillion relief bill by Congress, which is expected to soon be ratified by President Joe Biden.

In addition, a better than expected job openings report fueled expectations for economic recovery and improved investors’ sentiment.

The Dollar Index (DXY), which measures the greenback’s performance against a basket of six major international currencies, is down by 0.36% at 91.49.

The index has been moving today, almost entirely in the negative territory, in a range between 91.47 and 91.88.

DXY is moving further away from the 92.5 level it reached on Tuesday, which was its highest in about three months.