Dollar Gains After US House Passes Budget Blueprint
The dollar rises along with Treasury yields as chances for early action on Donald Trump’s tax cut plans improve after House Republicans passed a budget blueprint.
The Bloomberg Dollar Spot Index rises 0.1% on Wednesday.
10-year Treasury yields up about 3bps in Asia trading.
“The US dollar has bounced on the back of higher US Treasury yields, this follows the House of Representatives passing the budget blueprint,” says Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
“Market seems more interested in the vote than expected. Such a long process ahead but at the least, it seems the bounce in UST yields was enough to stem the bleeding on BBDXY,” says Sean Callow, senior analyst at Intouch Capital Markets.
USD/JPY rises 0.3% to 149.44. EUR/USD down 0.1% to 1.0508. AUD/USD drops 0.3% to 0.6326
Source: Bloomberg