Rising treasury yields support dollar

Dollar is performing very well today. Dollar index, which a measure of value of dollar against basket of currencies is currently trading at 98.02, up 0.08% for the day.

Dollar has broken pound, which is down 0.12% so far against dollar, trading at 1.556.

As US economy is regaining its foot back, speculation has also came back to push dollar and treasury yields higher.

• US 2 year treasury yield is currently at 0.6817, up 2.43% today so far. While rising yield supports dollar, key question remains, whether or not yield will be able to break out its resistance around 0.73-0.75% area.

• This will be fourth consecutive attempt by treasury yields to break the level. Dollar is likely to gain further grounds if the level gets cleared.

Dollar index is also facing crucial resistance ahead around 98.5, which if broken dollar is likely to test 100 mark once more.