The greenback dollar traded stronger at a 3 -and -a -half -month high, driven by US treasury yields rising higher at 1.592% during the opening of the European session.
U.S. bond yields continued to strengthen from the $ 1.9 trillion stimulus package that was approved over the weekend that further boosted inflation expectations to rise faster than expected.
While US yields showed an increase, German bond yields declined, causing euro trading to fall to a nearly four -month low below the $ 1.19000 level against the USD.
In addition, optimistic readings of NFP employment data also strengthened the greenback dollar to rise higher.
The European Central Bank (ECB) policy meeting this week will be the main focus of the market awaiting further clarification from President Christine Lagarde on the recent increase in bond yields.
Meanwhile, the pound traded steady with a slight gain as market focus is now targeted on Bank of England (BOE) Governor Andrew Bailey’s speech tonight.
Commodity currencies, the Aussie dollar and the kiwi rebounded from gains recorded at the beginning of the Asian session, recording lower declines following the strengthening US dollar.
The Canadian dollar also failed to sustain gains from the surge in world crude oil prices following attacks on Saudi Arabian oil ports over the weekend.
