The levels of the US dollar rose with the beginning of this week’s trading, recording its highest level in two weeks against a basket of major currencies, and this comes in light of the high yield on US bonds amid increasing hopes about US stimulus.
The dollar index, which measures the performance of the federal currency against a basket of six major currencies, opened today's trading on an upside price gap, and recorded its highest level in two weeks at 90.49, after it opened the day's trading at the level of 90.26.
US President-elect Joe Biden, who will take office on January 20, promised to spend more massive stimulus to confront the Corona pandemic and its negative consequences on the US economy, especially after the Democrats took control of the two houses of the US Congress.
Accordingly, investors’ optimism soared in the markets, which led to a rise in the yield on US 10-year bonds by more than 20 points to reach 1.1187%, which in turn was reflected in the levels of the US dollar after investors stopped selling the green currency.
On the other hand, we find that the major currencies, on the other hand, started a sharp decline. The euro recorded its lowest level in two weeks against the dollar at 1.2153 after it opened the week’s trading at 1.2213, while the pound sterling recorded its lowest level in a week at 1.3481, and it had opened trading today. At 1.3562.
The rise in the yield on US government bonds has continued since the Democrats took control of the Senate last week, which was enough to end the continuous decline of the dollar since March of 2020 and which pushed it to its lowest levels since April of 2018.
The demand for safe haven also declined in the markets with the rise of the dollar and hopes for the US stimulus package increased, as Bitcoin fell by up to 12% to its lowest level in a week, and gold fell by 1% to a one-month low of $1816.93 an ounce.