The US dollar is taking a break after several days of gains, with the index that measures the performance of the greenback versus a basket of other currencies almost flat during early Tuesday trading. The turbulence registered in Washington last week ended up creating a political atmosphere that is likely to allow the Biden administration to deploy more substantial stimulus packages than many thoughts were possible. As the expected size of the fiscal intervention grows, the likelihood that the Fed will at some point towards the end of the year start tapering its purchasing program has also increased, driving Treasury yields higher and supporting the dollar.
