USD Strongly Recovers from Three-Week Low

The U.S. Dollar (USD) rose on Tuesday, beginning the week with a positive performance following a long weekend that was prolonged by Presidents Day on Monday.

The positive performance by the USD is supported by the strong increase in the U.S. Treasury yields, amid optimism for economic recovery from the Coronavirus pandemic, following the release of positive economic data.

Markets are seeing an improvement in investors’ sentiment, leading to the rise of the USD following a decline to its lowest level in about three weeks earlier.

The Dollar Index (DXY), which measures the greenback’s performance against a basket of six major international currencies, is up by about 0.12% at 90.60.

The index has been moving today in a range between 90.12 and 90.64, after closing the previous session at 90.48.

Data showed that the headline General Business Conditions Index of the New York Fed’s Empire State Manufacturing Survey rose to 12.1 in February from 3.5 in January.