The US dollar depreciated on Tuesday ahead of Treasury Secretary Janet Yellen's scheduled speech tonight. Yellen is expected to discuss the need for major fiscal stimulus and currency exchange rates.
The US dollar began to depreciate after strengthening by 2% so far in 2021. The strengthening recorded by the US dollar was something that most investors did not expect as most expected the US dollar to continue to depreciate.
However, the increase in U.S. treasury yields has prompted the strengthening of the US dollar and made investors more cautious. Ahead of Yellen's speech, ING analysts believe Yellen tends to take advantage of low borrowing costs and a new administration committed so that the US dollar is determined by the market. This view indicates that a weak US dollar would be an option.
The US dollar index, which measures the greenback against the major, recorded a decline of 0.40% to the exchange rate of 90,390 as of 10.10 p.m.
On the other hand, the Euro, which recorded a strong strengthening against the US dollar, lost its position with a decline by 0.56% to 1.2143 as of 10.10 p.m. The GBP currency however maintained a positive trend against the US dollar.
In addition, rising commodity prices in recent months have boosted the currencies of large commodity export countries, such as Australia and Canada.
The market is now focusing on Janet Yellen’s speech.
