NEW YORK: The US dollar rose on Wednesday from a seven-week low hit overnight, as broad weakness in stock markets triggered by a resurgence of COVID-19 cases in India and Japan encouraged a retreat to the safe-haven appeal of the greenback.
The dollar index, which tracks the US currency against six major peers, was up 0.1% at 91.289 in the morning in New York after slumping overnight as low as 90.856.
The benchmark 10-year Treasury yield hovered just above 1.57% on Wednesday morning, not far from the 1.60% level at the start of the week, as the note consolidated gains after a reversal that had driven yields to a 14-month high at 1.7760% last month. The biggest casualty of the dollar’s rise in Wednesday trading was the euro, with the single currency weakening 0.24% at $1.2007 after touching a seven-week high of $1.2079 overnight.
The Japanese yen, often seen as a safer refuge than the dollar, gained against the greenback to 107.86 but then drifted back 108.14 on Wednesday morning.
In cryptocurrencies, bitcoin traded around $55,500, consolidating following its dip to as low as $51,541.16 on Sunday. It set a record high at $64,895.22 on April 14.