Currency Buzz: US Dollar Regains Upside As Treasury Yields Rebound

21 Mar 2022 , 04:25 PM

The US dollar regained upside on Monday after easing sharply during the weekend amid a mild rebound in US yields. Investors await remarks from U.S. Federal Reserve chair Jerome Powell and other central bank policymakers this week for monetary policy clues. The Fed raised its key interest rate by 25 basis points last week for the first time since 2018. The US dollar index, that measures the greenback against a basket of currencies edged lower below the 98 mark during the weekend and is currently seen quoting at 98.26. Meanwhile, the benchmark 10-year Treasury yields climbed to 2.20%, closing in on its highest level since May of 2019, as expectations of higher interest rates dented appetite for government debt while investors continued to follow developments in the Russia-Ukraine war. Currency markets have been roiled over the past month by the financial fallout from Russias invasion of Ukraine, as the economic costs come into sharper focus, including higher inflation fuelled by rising energy costs.

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