The greenback retreated from a four -month high it reached in the previous session, as investors awaited U.S. President Joe Biden’s speech on his new infrastructure plans today.
Against most major currencies, the dollar index eased around 93.15 at the beginning of the European session. The benchmark US 10 -year treasury yield was down slightly to 1.73%.
The decline, however, may be due to profit -taking by investors before the close of the trading session for March.
Month -end and quarterly trends may only pose short -term risks for the U.S. dollar. With U.S. stocks hitting record highs in March and the dollar index rising to a 4 -month high, asset managers need to sell dollars to balance their portfolios.
Today, March 31 is also the end of the fiscal year in Japan which means there will be profit -taking by Japanese investors.
Meanwhile, according to the latest statement revealed by an administration official to CNBC, Biden is expected to launch an infrastructure package worth more than $ 2 trillion that covers 8 years of expenditure.
In addition, he will also increase the corporate tax rate to 28% from 21% to cover government expenses.
The increase is not expected to have a significant impact on the stock market as the move is also aimed at reviving the economy.
