Dollar dips, Aussie gains on improving risk sentiment
The dollar dipped on Tuesday and riskier currencies including the Australian dollar gained as U.S. stocks were stable, reflecting improving risk appetite.
The greenback has been a beneficiary from recent volatility in stocks, which were roiled last week by a dramatic jump in U.S. government debt yields.
Treasuries have stabilized this week, with benchmark yields holding below last week’s highs, helping to restore some market calm.
The dollar index fell 0.31% to 90.731, after earlier reaching a three-week high of 91.396.
The euro gained 0.36% to $1.2092.
Rising yields came as participants worried that an economic recovery from the impact of the COVID-19 pandemic, combined with fiscal stimulus, will cause a jump in inflation and potentially faster tightening from the Federal Reserve.
The volatility also boosted the greenback as investors unwound short positions in the currency.
Reference: Reuters
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