The dollar softened a little on Tuesday in the wake of improving market appetite for risk assets and currencies, extending its overnight losses following a blow to Democratic spending plans in Washington.
But moves were muted with a surge of cases of the Omicron variant of the new coronavirus, which has caused some countries to reimpose restrictions, deterring traders from moving too aggressively.
The dollar index , which measures the currency against six major peers, dropped to as low as 96.450, down marginally on the day after losing 0.12% overnight.
The euro inched higher to $1.1282, and the safe haven yen lost some ground to 113.7 per dollar, both moves in keeping with Tuesday's gains in Asian equities, U.S. share futures and oil.
Two-year U.S. Treasury yields on Monday touched 0.5870%, their lowest since Dec. 3, also causing the yield curve to steepen.
Two-year notes last yielded 0.6317% and yields on benchmark 10-year Treasuries were steady at 1.4242%.
The pound was soft at $1.3213 after British Prime Minister Boris Johnson said on Monday he would tighten coronavirus curbs to slow the spread of the Omicron variant if needed.
Bitcoin gained 4% to $48,700 after trending lower for the past few weeks.
Reference: Reuters
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