The US dollar returned to gains in the Asian session after declining sharply following profit -taking by investors.
The monarch currency was down 0.6% after hitting its highest level since March 2020 and giving most other major currencies a chance to rise.
However, the decline did not last long as the giant rebounded in today's trading session, seeing the dollar index trade at 100.48 against a group of major wnag points.
Following the decline in the USD and US bond yields, the yen managed to post modest gains in addition to being supported by the actions of the Central Bank of Japan (BOJ).
The BOJ once again offered to buy unlimited Japanese government bonds to curb Japan’s 10 -year yield rise, which exceeded its 0.25%yield target.
Moreover, the Aussie dollar also rose amid expectations that the Australian Central Bank (RBA) will raise its interest rates soon to curb the inflation surge.
The euro also rose as Emmanuel Macron continued to lead the vote to win the final round of the April 24 presidential election. However, the gains recorded were limited when the USD re -recorded gains.
The pound remained stable around 1.3000 but the price movement is still hovering at its lowest level since November 2020. These two European currencies will be the focus of investors ahead of the release of manufacturing and services PMI data on Friday.
