U.S. dollar strengthens as bond yields climb

NEW YORK, Jan. 11 (Xinhua) -- The U.S. dollar appreciated in late trading on Monday amid an uptick in bond yields.

The dollar index, which measures the greenback against six major peers, rose 0.38 percent at 90.4600.

U.S. bond yields have rallied recently with the 10-year Treasury yield climbing above 1.1 percent on Monday, amid expectations of further fiscal stimulus under a Biden administration and a unified Congress.

In late New York trading, the euro decreased to 1.2163 U.S. dollars from 1.2212 dollars in the previous session, and the British pound was down to 1.3524 dollars from 1.3560 U.S. dollars in the previous session. The Australian dollar fell to 0.7708 U.S. dollar from 0.7747 dollar.

The U.S. dollar bought 104.15 Japanese yen, higher than 103.93 Japanese yen of the previous session. The U.S. dollar rose to 0.8894 Swiss franc from 0.8865 Swiss franc, and it increased to 1.2775 Canadian dollars from 1.2711 Canadian dollars.

Yet, analysts expect the greenback to weaken as long as global recovery prospects stay in focus.

"A wider economic recovery should improve the prospects for more procyclical currencies and lead to a corresponding decline in demand for safe-haven assets, such as the U.S. dollar," Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note on Monday.

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