The US dollar continues to trade steady and hold on to its recent gains into Wednesday as US Treasury yields recovered over a renewed interest for the currency as a safe haven amid heightened uncertainty in global markets over the coronavirus pandemic. At the time of writing, the US dollar index is trading around 99.28.

Other major currencies are suffering over growing fears of a global economic recession as the number of coronavirus cases and death toll continue to rise, prompting governments to enforce travel restrictions and shutdowns. The US dollar, however, remains in favor as investors seek more liquidity and turn away from other instruments.

So far, nearly 200,000 people around the world have been infected with the virus while over 7,800 lives have been lost due to the infection. The economic impact of the coronavirus continues to grow even as countries and central banks scramble to roll out stimulus measures to protect their economies from weakening further.

The US dollar received additional support after the 10-year US Treasury yields surged 34bp higher in the previous session. This was the sharpest one-day increase seen in yields in nearly 16 years, making the greenback a more attractive currency to own amid the risk-off sentiment in the markets.