Dollar Index ekes out gains despite weakness in US yields
|- The S&P 500 futures drop, pushing the dollar higher against major currencies.
- The greenback gains ground even as treasury yields slide.
- The yield curve flattens by two basis points as a longer duration yield softens.
The dollar index (DXY), which tracks the greenback's value against majors, advanced during Tuesday's Asian session even though the US treasury yields softened.
At press time, the DXY is seen at 93.16, up 0.13% on the day and the US 10-year yield is down nearly two basis points at 0.759%. Also, the yield curve has flattened with the spread between the 10- and two-year yields falling two basis points to 0.61 basis points.
Softer treasury yields usually weaken the greenback's appeal. So far, however, the latest weakness in yields has failed to entice the greenback sellers.
That's possibly because the S&P 500 futures are signaling a weakening of the risk sentiment with a 0.45% drop.
Besides, the greenback may be drawing haven demand on the back of the news that Johnson and Johnson's coronavirus vaccine trial has been paused.
The dollar may continue to gain ground int he near term, as the US fiscal largesse is positive for treasury yields.
Technical levels
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