Dollar on track for second straight weekly loss on US bonds slide

The US dollar fell against a basket of major currencies on Friday, resuming its losses after taking a breather yesterday, to head today for its 1-month low and the second weekly loss in a row, due to the latest developments in the US bond market.

The dollar index fell 0.2% to 91.50 points, after opening at 91.66 points, and hit a low of 91.81 points.

The greenback gained less than 0.1% yesterday, within recovery attempts from a 1-month low of 91.49 points.

The US dollar index lost 0.75% so far this week, to head for the second weekly loss in a row due to improved risk appetite and slowing demand.

The market sentiment improved after the release of strong economic data in the US and China, which boosted hopes for a fast and strong economic recovery around the world, in addition to a drop in the US Treasury bond yields.

The 10-year US Treasury yield fell this week, and hit a 5-week low of $1,529, after after Federal Reserve officials repeatedly assured that interest rates will remain low until there is a safer economic recovery.

Fed Chair Jerome Powell said the Fed will cut its monthly bond purchases in the appropriate time before it commits to increasing interest rates.