The US dollar continued to strengthen for the third consecutive day on Monday, soaring to a four-week high as markets were more reluctant to invest in risky currencies.
Ahead of Joe Biden's inauguration as president of the United States (U.S.) on Wednesday and the closing of the market, market players are more cautious in observing the new administration's stance on the US dollar.
Trump had previously rejected the view of strengthening the US dollar for years during his administration. Janet Yellen in a statement explained that the US was not looking for a weaker dollar for competitive trade advantage, the media reported, quoting a transitional official. Biden involved in preparation for job confirmation.
The former Federal Reserve (Fed) chairman is scheduled to testify before the Senate Finance Committee at Capitol Hill on Tuesday.
He is expected to be easily confirmed as U.S. Treasury Secretary by the Senate tomorrow, the day before President Joe Biden officially takes over the White House on Wednesday.
In addition, Joe Biden's $ 1.9 trillion stimulus program has also boosted U.S. Treasury yields and indirectly boosted the US dollar.
The dollar index soared to a one-month high and last traded at 90.94, the highest level since December 21. As of 10.00 p.m the US dollar index strengthened by 0.12%.
