U.S. Dollar Returns to Downward Trend

The U.S. Dollar (USD) declined on Friday, returning to its downward trend after rising for two consecutive sessions, as Treasury bond yields fell.

A surge in inflation, the biggest in more than a dozen years, prompted a decline in the yields of long-term debt instruments and led to varied expectations about raising interest rates by the Federal Reserve.

The Dollar Index (DXY), which measures the greenback’s performance against a basket of six major international currencies, is down by for the day by 0.45% at 90.35, near its daily low of 90.28, versus its highest level of the day at 90.80.

It is worth noting that the index closed Thursday higher at 90.75, after surging on Wednesday.

Furthermore, a retreat in consumer sentiment in the U.S. also resulted from the rise in consumer inflation as recent data showed.