US DOLLAR INDEX FADES TWO-DAY UPTREND NEAR 103.00, FED’S PREFERRED INFLATION, BANKING NEWS EYED l

US Dollar Index (DXY) teases sellers around 103.00, following a two-day winning streak, amid market’s consolidation during early Monday. In doing so, the greenback’s gauge versus six major currencies remain pressured after two-week downtrend as the US Treasury bond yields remain pressured.

US 10-year Treasury bond yields struggle to defend the late Friday’s corrective bounce off the lowest levels since September 2022 amid mixed concerns about the banking sector and the US Federal Reserve’s (Fed) next move. However, the dovish comments from Minneapolis Fed President Neel Kashkari and headlines surrounding Silicon Valley Bank (SVB) weigh on the US Dollar of late, mainly due to a mild rebound in the market’s sentiment.

Fed’s Kashkari said on the CBS show Face the Nation that recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. On the other hand, headlines from Bloomberg also contributed to the risk-on mood and weighed on the US Dollar. “First Citizens BancShares Inc. is in advanced talks to acquire Silicon Valley Bank after its collapse earlier this month, according to people familiar with the matter,” said Bloomberg.

Previously, Reuters’ news about Russia allowed the US Dollar to grind higher before the latest fall. “The North Atlantic Treaty Organization (NATO) NATO on Sunday criticised Vladimir Putin for what it called his ‘dangerous and irresponsible’ nuclear rhetoric, a day after the Russian president said he planned to station tactical nuclear weapons in Belarus,” per Reuters.