US dollar slightly up on risk aversion

After declining on Tuesday, the US dollar is now moving in the right direction. The US dollar outperformed its competitors due to the steep rise in US Treasury bond yields.

The main Wall Street indexes are trading in the red, but the US dollar is unable to gain any more ground. The dollar has managed to shake off the selling pressure mid-week after having weakened against its major rivals on Tuesday. Rising US Treasury bond yields and the risk-averse market environment provided a boost to the dollar.

Although the major Wall Street indexes started the day in the red, the USD appears to be struggling to hold onto its momentum. The USD’s most recent decline appears to be a technical movement in nature given the lack of important macroeconomic data releases and fundamental influences.

In the American session, the US Dollar Index, which measures the performance of the USD against a basket of six major currencies, is trading at 101.937 at the time of writing after it reversed course and fell below 102.00, wiping out a significant chunk of its daily gains in the process.