U.S dollar stays fairly stable amid rising U.S Treasury yields

The greenback (U.S paper dollars) remained fairly stable at the first trading session in March. The slight drop in the U.S dollar was not enough to trim its biggest gain seen in the U.S dollar index since June 2020 last Friday.

The U.S. Dollar Index that gauges the greenback against a basket of major currencies inched lower by 0.04% to trade at 90.843 index points.

Currency traders are now focusing on the global bond market, where yields especially in the U.S bond markets gained yearly highs thereby raising hopes of a global economic recovery from COVID-19 triggered a selloff during the past week.

Bond moves are overriding economic data as the driver of currency markets, with treasury yields moving well ahead of economic fundamentals.