US dollar stays up as bond market calms

London

THE US dollar was up for a fourth consecutive day on Tuesday, after a recent spike in bond yields challenged the market consensus for dollar weakness in 2021, but riskier currencies rose as bond markets calmed and stocks recovered.

Rising yields have spooked markets in recent weeks, with participants worried that an economic recovery from the impact of Covid-19, combined with fiscal stimulus, could cause a jump in inflation from pent-up consumer demand when lockdowns end.