Rising US Bond Yields Give a Boost to The Dollar in February

The currency markets witnessed a lot of fluctuations in February, as the US dollar fell sharply over the past month, to fall to its lowest level in nearly two months against a basket of major currencies but quickly returned to correct its course, supported by high bond yields.

The dollar rose in the February 26 session, recording the highest daily growth rate since June of last year.

On the other hand, the pound sterling may be one of the most prominent gainers in February, with its rise against its US counterpart by about 1.7%, to close last month in the green zone at $1.3932, and the British currency rose against the euro to its highest levels in nearly a year with the decline of the single European currency against the pound by about 2% last month, to end the last session in February at £0.8664.

The rise in the pound came supported by hopes of ending the third national lockdown in the United Kingdom and easing fears in the market associated with negative interest rates.

And from the west to the far east, as the Japanese safe haven against the US dollar fell to its lowest level in 6 months, with the dollar rising against the Japanese yen by 2%, to close the month at 106.58 yen.