WASHINGTON (dpa-AFX) - After trending lower over the past few sessions, the value of the U.S. dollar has shown a modest move back to the upside during trading on Friday.
The U.S. dollar index has pulled back after reaching a high of 91.96 but is currently up 0.2 percent at 91.64.
The greenback is trading at 109.04 yen versus the 108.51 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1956 compared to yesterday's $1.1986.
The increase in the value of the dollar comes amid a jump in bond yields, with the yield on the benchmark ten-year note surging back above 1.6 percent to its highest levels in over a year.
The increase in yields came after President Joe Biden directed states to make all adults eligible for a coronavirus vaccine by May 1st.
The vaccine news combined with the new $1.9 trillion stimulus package has generated optimism about the economic outlook, reducing the appeal of bonds. Bond yields move in opposite direction to prices.
Yields saw further upside following the release of a report from the University of Michigan showing U.S. consumer sentiment improved by much more than expected in the month of March.
The University of Michigan said its consumer sentiment index jumped to 83.0 in March after dipping to 76.8 in February. Economists had expected the index to inch up to 78.5.
With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 89.1 in March of 2020.
A separate report released by the Labor Department released showed U.S. producer prices increased in line with economist estimates on the month of February.
The Labor Department said its producer price index for final demand climbed by 0.5 percent in February after spiking by 1.3 percent in January. The price growth matched expectations.
Excluding prices for food, energy, and trade services, core producer prices edged up by 0.2 percent in February following a 1.2 percent jump in January.
The report also showed the annual rate of growth in producer prices surged up to 2.8 percent in February from 1.7 percent in January.
Core producer prices in February were up by 2.2 percent compared to the same month a year ago, reflecting an uptick from the 2.0 percent growth in January.
Copyright RTT News/dpa-AFX
© 2021 AFX News
