Dollar jumps to 1-week high as US bonds yields recover

US dollar rose today against a basket of currencies, extending its gains to 1-week high, as the 10-year US Treasury yield continued to rise due to the risk appetite in the markets improving and recession concerns in the US easing.

The dollar index rose by 0.3% to 98.66 points (1-week high), from the opening of 98.33, with a low of 98.16.

Dollar closed higher by 0.1% yesterday, on the rise of US Treasury bonds yields, and sings on the easing the of the US-China trade war.

US 10-year Treasury yields rose today to 1-month high of 1.726%, rising  for the second day, as the risk appetite improved in high-yielding asset.

The gap with the 2-year US Treasury yield, reduces the market's fears of a near US recession, which has recently increased after the inversion of the yield curve.

 The Chinese Ministry of Finance announced today that 16 US products would be exempted from tariffs, with a 1-year exemption from September 17th.

Which is interpreted as the latest sign on the easing of the US-China trade war after the announcement of a new round of trade talks in Washington in first of October.

While the US Treasury Secretary Steven Mnuchin told Fox News yesterday that there is a preliminary agreement on solving the intellectual property crisis with China, and that the two countries have reached a lot of progress in the talks, and the US side is fully prepared to negotiate.