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Dollar soft after as U.S. yields pause

14 April 2022 07:06 (UTC +04:00)

The benchmark 10-year Treasury yield was 2.7120%. It rose steadily earlier this month - driven by expectations of more aggressive Federal Reserve tightening to combat inflation - and reached as high as 2.836% on Tuesday, ahead of U.S. inflation figures, APA reports citing Reuters.

However, while high, these were not quite as bad as some had feared, which observers said caused yields to pause.

The two year yield was also lower at 2.3604%.

The British pound rose to $1.3131 in early trade, its highest in a week against the dollar, after jumping 0.9% on Wednesday, its biggest daily percentage gain since June 2021, partly boosted by high inflation figures.

The euro too gained ground on the dollar , rising 0.54% on Wednesday, though fell against sterling

This left the dollar index which measures the dollar against six peers, at 99.818 after a 0.52% overnight tumble.