During today's Asian trading, the US dollar rose modestly, hitting a 3-1 / 2 month high, as a broad rise in Treasury yields dampened investor sentiment in stock markets.

After falling 4% in the final quarter of 2020, the dollar has gained more than 2.4% since the start of the year compared to its rivals, as investors expect a broad rise in US bond yields to weigh on stock prices and boost the dollar's appeal.

"Higher yields in the US have increased stock market volatility and supported the US dollar. The Federal Reserve remains dovish, but Chairman Jerome Powell chose not to pay lip service to higher yields, which provided further short - term gains for the dollar," UBS strategists said.

BofA analyst Athanasios Vamvakidis argued that the strong combination of US stimulus, faster opening and increased consumer power was a clear positive for the dollar.

The Senate passed a $ 1.9 trillion COVID-19 relief plan a day after a U.S. employment report lifted the dollar to its highest level since November 2020.

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.20%.