The Dollar moved broadly higher in N.Y. on Friday, taking the DXY to highs of the week at 90.61. The index opened near 90.30, and had bottomed at 89.96. Treasury yields formed up some into the weekend, with position squaring following a week of significant yields drops driving the bond market. Incoming data was light, with the University of Michigan consumer sentiment on tap, which improved more than expected, and improved USD sentiment. Wall Street was narrowly mixed through the session, with investors perhaps remaining sidelined ahead of the FOMC meeting, and a heavy U.S.

The dollar lifted out of lows after yesterday tracking the sharp drop in longer-dated Treasury yields. The DXY dollar index recouped a large part of yesterday’s decline in posting an intraday high at 90.22, having earlier printed a two-day low at 89.96. EUR-USD dropped back to the mid 1.2100s after earlier carving out a two-day high at 1.2196. The ebb in the pairing was the product of a broadly, albeit moderate, decline in the euro concurrent with a broad firming in the dollar, which has lifted out of lows.

The dollar has traded softer so far today, tracking an extended decline in longer-dated U.S. Treasury yields, which has seen the 10-year T-note yield hit a fresh three-month lows under 1.440%, which is nearly 10 bp down on yesterday’s peak. The magnitude of the greenback’s declines has been limited, though enough to see two-day lows versus the euro and pound, and a four-day low in the case of the Australian dollar. The U.S. currency has, meanwhile, remained within yesterday’s ranges against the yen and Canadian dollar, among other currencies.