The dollar took some steps back towards normalcy during morning trade in Asia Thursday, recovering its poise from the risk-aversion caused by elevated trade tensions between the U.S. and China earlier this week.
The US Dollar Index that monitors the value of the greenback relative to a basket of six currencies stood at 94.92, up by 0.15% at 11:50PM ET (3:50GMT).
Long-term Treasury yields recovered from three-week lows on Wednesday, supporting the dollar’s rise on Thursday.
Federal Reserve Chairman Jerome Powell said on Wednesday that the U.S. central bank should continue with a gradual pace of rate increases, which also supported yields. Powell said during a meeting of central bank chiefs in Portugal that trade tensions could cause damage to the global economy.
