XE Market Analysis: North America – Mar 05, 2021

The dollar has continued to ascend on the back of a favourable shift in yield differentials. While the 10-year T-note yield has settled at moderately lower levels, under 1.55%, after pushing above 1.580% yesterday, the yield remains up by over 60 bp on the year to date. The dollar, as gauged by the DXY index, earlier posted a 10-week high at 92.03, which marks a 2.3% gain from last week’s low. This follows Fed Chair Powell’s tacit approved of the upward trajectory of yield.