Dollar Index slips to lowest since Sept 21
- Dollar index hits multi-week lows below 93.00 as S&P 500 futures rise.
- The greenback extends a three-day losing streak amid improved risk appetite.
- Rising treasury yields, however, are cause for concern for dollar bears.
The dollar index (DXY), which gauges the greenback's value against major currencies, is extending its three-day losing streak.
At press time, the DXY is trading at 92.97, the lowest level since Sept. 21, representing marginal losses on the day. The index fell by nearly 0.4% on Tuesday to register losses for the third straight day.
Renewed expectations for additional US fiscal stimulus and coronavirus vaccine before the end of the year-end put a bid under the US and global stocks on Tuesday, weakening the haven demand for the greenback.
The futures tied to the S&P 500 are currently signaling continued risk-on action with 0.34% gains and keeping the US dollar on the defensive.
That said, big losses may remain elusive, as the US fiscal largesse is positive for treasury yields. The 10-year Treasury yield is currently trading at 0.80%, the highest level since June 10.
Further, the European Central Bank and the Reserve Bank of Australia are expected to ramp up stimulus over the next two months. Put simply, major currencies like the EUR and AUD may have a tough time rallying against the greenback and other currencies.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
