US dollar has posted some weakening in the second half of the week. The American currency decreased after hitting a multi-month peak early this week as the market took some break.
The US Dollar index went down to 90.00, falling below the January high of 91.04.
The driver of the recently observed sharp dollar upturn is soaring 10Y US bond yield, which fueled expectations about early interest rate revision in 2018. Specifically, higher interest rate prospects boosted greenback attractiveness for investors.
As it was reported, the US state bonds jumped over 3% for the first time since 2014, which meant increased confidence in the US economic outlook.
Thus, US dollar weakened against the yen to 109.20 (109.46 earlier).
The euro rebounded to 1.2167 in the pair with the dollar. Investors are waiting for the press conference of the European Central Bank after its meeting.
Positive dynamics was posted by the sterling, which moved up to 1.3971 vs the greenback. Australian and New Zealand currencies also strengthened positions reaching 0.7570 and 0.7076 respectively.