Follow The Treasury Yields &Nbsp; The US Dollar Narrowed On Monday.

On Monday morning, Beijing time, on Monday, the US supply management association data showed that the manufacturing activity in the US improved significantly in December. Driven by strong market expectations, American stock index Go up, at the same time US Treasury yields Narrowing the previous gains slightly and driving US dollar exchange rate It fell back from earlier gains.

At the close of the foreign exchange market, the US dollar index for tracking six major currencies was 79.21 points, or 0.23%. The index rose to 79.527 points earlier on Monday. In the last trading day of 2010, the US dollar index fell, but there was a 1.5% increase in the whole year.

Market analysts generally believe that although the US dollar to yen exchange rate continued to decline last year, the overall rise in the US dollar index in 2010 was mainly due to the euro zone sovereign debt crisis's pressure on the euro exchange rate. Since last year, the euro has fallen by 6.5% against the US dollar while the US dollar has fallen by 12.9% against the Japanese yen.

The euro traded against the US dollar at $1.3364 on Monday, or 0.07%, while the US dollar against Japanese yen closed at $81.63, or 0.52%.

Earlier Monday, the US supply management association data showed that the manufacturing index rose to 57 in December, up from 56.6 in November, almost the same as expected in the market. Relatively good, but the increase was slightly smaller than the expected manufacturing index report, which led the US Treasury bond yield to narrow the previous gains. Overseas fixed income investors usually regard treasury bond yields as an important indicator of the US dollar exchange rate. The yield of US dollar bonds makes us dollar assets more attractive.

The US stock index also rose on Monday as investors switched funds from a variety of relatively safe assets, including the US dollar, to the stock market. As of the end of the foreign exchange market, the S & P 500 index rose 1.46%.

According to major money market news, Estonia has formally joined the euro area since January 1, 2011 and became the seventeenth member of the European Monetary Union.

In other currencies, the pound dropped to $1.5491 against the US dollar, or 0.65%, while the US dollar fell to 0.42% against the Canadian dollar at $0.9916, while the Australian dollar declined by 0.47% to $1.0190.