Dollar index jumps as Biden's fiscal plan balloons to $2 trillion
|- The US dollar gains ground against major currencies, pushing the DXY to near 90.50.
- The US yields jump, lifting the greenback higher on reports of a bigger fiscal stimulus plan.
The dollar index, which tracks the greenback's value against majors, is rising with the USD drawing bids against majors, tracking a fresh uptick in Treasury yields.
The index jumped from 90.25 to near 90.50 in the past 15 minutes or so, with the 10-year Treasury yield rising from 1.076% to 1.11%. At press time, the DXY is trading near 90.38.
The benchmark yield seemingly received a boost from reports stating that the size of the US President-elect Joe Biden's stimulus plan has ballooned to $2trillion. That's significantly higher than the $1.3 trillion stimuli proposed by Senator Chuck Schumer.
Increased fiscal and monetary spending typically weighs over the domestic currency. However, the dollar is cheering the latest news, possibly due to an uptick in yields.
Besides, some dollar bears may be feeling disappointed, given the latest stimulus figure is much less than the $3 trillion number published by an Axios report last week.
Technical levels
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