Dollar Index's recovery rally stalls as US 10-year yield recedes from 12-month highs
|- The dollar index retreats from the session high of 90.36.
- The Us 10-year yield drops six-basis points from 12-month highs.
- Analysts at Goldman Sachs maintain bearish view on the dollar.
The dollar index (DXY), which tracks the greenback's value against majors, trades near 90.28 press time, having printed a high of 90.36 a few minutes ago.
The DXY's recovery rally from the seven-week low of 89.68 reached early Thursday has stalled, with the US 10-year Treasury yield retreating from the 12-month high of 1.55% to 1.49%.
The benchmark yield has been on a tear of late, with market-based measures showing signs of inflation pressures and oil and indsutrial commodities rising to multi-year highs. That triggered fears of an early unwinding of stimulus the Federal Reserve (Fed).
As such, stocks came under pressure on Thursday, boosting haven demand for the greenback.
The rotation of money out of growth stocks could gather pace, possibly yielding deeper stock market losses and a more robust USD recovery.
However, Fed's Chairman Jerome Powell assured markets of continued stimulus support earlier this week. Besides, according to Goldman Sachs, the dollar would remain weak while short-duration yields remain relatively low.
While the 10-year yield has increased by nearly 50 basis points this year, the two-year yield has gained just four basis points.
Technical levels
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