The USD was a beneficiary of higher US government bond yields today

10yr UST touched above 3%, its highest since the start of 2017

via Reuters , comments from Shin Kadota, senior strategist at Barclays in Tokyo

  • "Revived expectations that the U.S. economy would perform well thanks to tax cuts and increased fiscal spending are supporting the dollar
  • Yields rose and equities slipped before but the situation is a little different, as expectations towards the U.S. economy are now stronger"

Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo

  • "At first glance, the situation is similar to February, when U.S. yields rose sharply and equities tumbled. But the difference this time is that the response by equities is more measured, and yen demand stemming from 'risk off' is not nearly as strong"
  • The market's attention is firmly back on interest rate differentials and this is likely to keep supporting the dollar going forward."