Investing.com – The dollar was up on Friday morning in Asia, supported by higher U.S. Treasury yields.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, gained 0.12% to reach 90.632 by 10:15 PM ET (2:15AM GMT), as the U.S. 10 Year Treasury Yield edged up overnight.
Despite the small gain in the morning, analysts expect the greenback will be on a downward tracjectory. “Wide expectations of that huge issuance that’s coming and the support of the Fed mean that we’re looking in the medium-term for further U.S. dollar weakness,” Michael McCarthy, chief strategist at CMC Markets in Sydney, told Reuters.
He added that commodity currencies such as the Australian dollar will receive support from the reversal in risk appetite.
Investors are also awaiting news of U.S. President Joe Biden’s fiscal spending package, with worries that the proposed $1.9 trillion deal will not end up being as large as expected.