Dollar dives to 7-week low as US T-bonds pull back

The US dollar fell on Monday, to deepen its losses for the second straight day, due to improved market sentiment after the 10-year US Treasury bond yields fell, while the European and US stocks rallied to new highs.

The dollar index fell over 0.6% to the lowest since March 21 at 91.03 points, after opening at 91.54 points, and hit a high of 91.75 points.

The US dollar fell 0.1% on Friday, its fourth daily loss in 5 days, due to weak demand.

The greenback gained 0.6% last week, and posted its second straight weekly loss, due to the latest developments in the US bond market.

The 10-year US treasury yields fell 1.9% today to 1.552% near a 5-week low of 1.529%, which lifts the market's risk appetite. 

Christopher Waller said on Friday he sees the US economy as "set to take off" as vaccination continues, but the recent rise in inflation is likely to be temporary.