- Dollar index remains bid as treasury yields continue to rise.
- The 2-year yield hit fresh 9-year highs.
The dollar index (DXY), which tracks the value of the greenback against the basket of currencies, rose to 83.99 in Asia - the highest level since April 9.
The American currency picked up a bid in the US session yesterday, tracking the rally in Treasury yields. The 10-year yield rose above 2.9 percent and extended gains to a one month high of 2.914 percent in Asia. Further, the two-year yield rose to 2.44 percent - the highest level since September 2008. Meanwhile, Fed fund futures yields continue to price the next rate hike in June around 90%, according to Westpac.
Ahead in the day, the dollar will likely take cues from equities and treasuries, given there are no first-tier economic data scheduled for releases.
Dollar Index Technical Levels
Acceptance above 90.18 (March 29 high) would open the doors to 90.45 (March 20 high) and 90.60 (April 5 high). On the downside, break below 89.23 (April 17 low) could yield a pullback to 88.94 (March 27 low) and 88.55 (Feb. 1 low).
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