By Saqib Iqbal Ahmed and Saikat Chatterjee
NEW YORK, Apr 6 (Reuters) – The dollar fell to a two-week low against a basket of currencies on Tuesday as investors took gains and a pullback in U.S. Treasury yields from Recent highs put pressure on the greenback.
* The dollar index fell 0.239% to 92.341 units, the lowest level since March 23.
* The greenback has risen strongly this year, along with Treasury yields, as investors are betting on a faster recovery from the pandemic in the United States than in other developed nations, thanks to massive stimulus and an intense vaccination campaign .
* The 2.5% rise in March marked the largest monthly increase for the US currency since the end of 2016.
* “I think we are seeing profit taking at the beginning of the new quarter,” said John Doyle, vice president of operations and transactions at currency payments company Tempus Inc. “Treasury yields have helped the dollar stabilize.” .
* Treasury bond returns fell on Tuesday, as stocks on Wall Street hit new highs, further easing demand for the dollar’s safety.
* Against the yen, the dollar was down 0.29% to 109.855 yen, a one-week low.
* The International Monetary Fund on Tuesday raised its projection for world economic growth to 6% this year, reflecting a rapid improvement in the outlook for the US economy.
* The encouraging assessment comes after a favorable US employment data on Friday and a strong service activity report on Monday.
* The British pound fell on Tuesday, due to profit taking after it reached a peak in more than two weeks.
(Additional reporting by Tom Wilson, Edited in Spanish by Javier Leira)