The U.S. dollar strengthened against major currencies with the index up to a four-month high on the back of the vaccination rollout and another major stimulus.
- The dollar index grew above the 93 mark and was last up by around a third of a percent to a four-month high of 93.185. The greenback also rose above 110 yen, a level not seen since March 2020.
- The dollar is on track for its best month since late 2016, with demand being driven up by the end of Japan’s fiscal year as companies close books.
- Ten-year U.S. Treasury yields jumped to 14-month highs on Tuesday, the day before President Joe Biden is scheduled to announce a $3-trillion to $4-trillion infrastructure plan.
- Analysts say the dollar is likely to find strong support from the upcoming payrolls release, with Federal Reserve policymakers citing slack in the labor market for the continued stance on interest rates.