Currency Buzz: Dollar Stays Weak Amid Improving Risk Sentiment

25 Mar 2022 , 03:16 PM

The US dollar faces downside pressure on Friday after an uptrend in the last couple of days as risk sentiment gained traction. Improving global risk sentiment appeared to shrug off geopolitical and economic uncertainties, denting demand for the safe-haven dollar. The Fed raised the benchmark lending rate by a quarter point at their meeting last week, the first increase since December 2018. The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 98.66. However, US benchmark 10-year yields were last seen trading at 2.36%, not far removed from the highest level since 2019, providing support for the dollar. Meanwhile, US President Joe Biden said Thursday that NATO would respond ?in kind? if Russia uses weapons of mass destruction in Ukraine. The president spoke after a marathon of summit meetings with the European Union, G-7 partners and NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies.

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