The dollar strengthened against the major currencies. This was in line with US Treasury yields, which have moved near their highs in more than a year.
The dollar was also fueled by the forecast that The Federal Reserve may raise interest rates faster than expected to curb inflation.
As of 11:18 p.m. ET, the dollar was 0.39% to 106.62 yen, while the euro fell 0.16% to 129.11 yen and fell 0.53% to $ 1.211. The dollar’s movement index against six major currencies in the currency basket added 0.48% to 90.56 after reaching 90.77, its highest in a week.
US 10-year Treasury yields weakened today. But it remained above 1.5%, after surging above 1.6% yesterday, hitting its highest level since February 2020. It was driven by strong US economic figures. And projections of a broader economic recovery from the coronavirus vaccine.
The US Treasury yields were also fueled by inflation expectations that will rise from the US $ 1.9 trillion stimulus package.
It is expected that The US House of Representatives will vote in favor of the stimulus today. Because Democrats occupy a majority in the US House of Representatives. In which, if the stimulus is approved Will be sent to the Senate hearing Before President Joe Biden endorsed the law.
U.S. House of Representatives Nancy Pelosi expects the approval process of the stimulus package to be completed by March 15, the day the unemployment measures affected by COVID-19 will be available. Expired
Congress previously approved a fast track approval of President Joe Biden’s $ 1.9 trillion stimulus package, using a budgeting approach known as budget reconciliation. This will pave the way for the House of Representatives and the Senate to approve the budget with more than half a vote. Instead of using two thirds of the votes for passing the general law. This allows such stimulus to pass Congress without the need for Republican support.
Democrats now occupy a majority in the US House of Representatives. In the Senate Democrats and Republicans have equal 50-50 votes, so the Senate’s approval of such stimulus measures is the same. Requires 1 vote from Vice President Kamala Harris. Which will vote as President of the Senate by office. It is also conditional that Democratic senators will not be able to split a single vote.
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