The dollar squeezed higher in opposition to a basket of currencies in early London Trading, it’s downward trend was interrupted when US Treasury Secretary Steven Mnuchin called an end to some of the Federal Reserve’s pandemic lending.Mnuchin’s move re-allocated some $455 billion issued to the Treasury for other spending, but some investors were worried over ending programmes that they believe have played an important role in reassuring markets. 10-year US Treasury yields dropped to their lowest since November 9.The Fed also stated it “would prefer that the complete suite of emergency facilities established during the pandemic continue to serve their vital role as a backstop,” a rare open confrontation with the government.The announcement reduced optimism created by reports that Republican and Democratic Senators had agreed to continue talks on another coronavirus stimulus package.The dollar index was at 93.335 at 0801 GMT, flat on the day after it dropped overnight then picked up again as European markets opened. Analysts also cited increasing coronavirus cases as a reason for caution.