The U.S. dollar firmed up against other major currencies on Wednesday, as Treasury yields rose on hopes that U.S. fiscal stimulus and vaccine rollouts will boost global economic recovery and spur inflation.
U.S. President Joe Biden said Tuesday that the U.S. expects to take delivery of enough coronavirus vaccines for all adults by the end of May.
Traders were also focusing on the developments on the stimulus front.
In economic news, data from payroll processor ADP showed that U.S. private sector employment increased much less than expected in February, rising by 117,000 jobs after climbing by an upwardly revised 195,000 jobs in January.
Economists had expected employment to increase by 177,000 jobs compared to the addition of 174,000 jobs originally reported for the previous month.
The dollar index rose to 91.06, rallying well from a low of 90.63 touched in the Asian session. Despite paring some gains subsequently, the index was up 0.21% at 90.98 a little while ago.
Against the Euro, the dollar firmed up to $1.2064, gaining 0.22%.
The Pound Sterling was almost flat at $1.3951, after having advanced to $1.4006 earlier in the day. Survey results from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK service sector output declined only moderately in February.
The final services Purchasing Managers’ Index rose to 49.5 in February from an eight-month low of 39.5 in January. The flash score was 49.7.
The Yen weakened to 107.02 a dollar, sliding from 106.69.
The Aussie was down nearly 0.6% with the AUD-USD pair at 0.7776 a little while ago, compared to previous close of 0.7820.
The Swiss franc, at 0.9200, was nearly 0.6% down from Tuesday’s 0.0148. Switzerland’s consumer price index decreased 0.5% year-on-year in February, same as seen a month earlier, data from the Federal Statistical Office showed. Economists had expected a 0.3% fall.
The Loonie weakened to 1.2656 from 1.2635. Data from Statistics Canada showed building permits in Canada increased 8.2% to an all-time high of C$ 9.9 billion in January, beating forecasts for a 3.5% increase.
The material has been provided by InstaForex Company – www.instaforex.com