The dollar’s trading stabilized near its lowest levels in a month, with US bond yields stabilizing near their lowest levels in 5 weeks, after the Federal Reserve confirmed that any rise in inflation is likely to be temporary, and this decline came as a result of an improvement in risk appetite amid rising stocks World to record levels. The dollar index is trading at 91.09, a level not seen since March 4.
10-year bond yields fell to 1.5280% last week, from a more than one-year high of 1.7760% at the end of last month, reducing the dollar's appeal.
The net short of the US dollar fell in the last week to the lowest level since June 2018, according to Reuters calculations and CFTC data released on Friday.
The US dollar is expected to resume its trend during the third quarter of the year, as Congress is likely to approve the stimulus plan, the launch of the vaccine will have made significant headway, and market expectations about reducing monetary stimulus from the Federal Reserve will increase.