Dollar Hovers at a Near 3-Month High
The dollar index held its recent rally to around 104.4 on Thursday, hovering at its highest levels in almost three months on growing expectations that the Federal Reserve will be more cautious in cutting interest rates further and rising odds that former President Donald Trump will retake the White House.
The greenback was also underpinned by rising Treasury yields, with the benchmark 10-year note reaching an intraday high of 4.26% on Wednesday. Those moves came as strong US jobs, consumer inflation and retail sales data indicated a still robust economy.
Fed’s Schmid said this week he would not prefer outsized moves, while Fed’s Harker called for a more moderate approach to further easing. On the political front, markets are betting that Trump will likely win in November, a bullish scenario for the dollar and Treasury yields given his inflationary policies such as higher tariffs and lower taxes. The dollar climbed to a three-month high on the yen and a four-month high on the euro (cay)
Source : Trading economi
