Dollar steady, supported by rising yields
The U.S. dollar was steady on Thursday, supported by rising Treasury yields after hawkish comments from the Federal Reserve and strong economic data reinforced bets for a slower pace of interest rate cuts.
At 4:35 a.m. ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading largely unchanged at 108.920, just below a two-year high hit last week.
Trading ranges are likely to be limited on Thursday, with U.S. traders on holiday to honor former President Jimmy Carter, with a state funeral to be held later in the session.
Dollar holds strength
The minutes of the Fed’s December meeting showed policymakers were increasingly geared toward a slower pace of interest rate cuts through 2025 amid renewed inflation concerns, while recent jobs data pointed to underlying strength in the labor market.
Fed officials also saw a growing risk that the incoming Trump administration’s plans could slow economic growth and raise unemployment.
This has caused the 10-year US Treasury yield to hit its highest level since April in recent days.
Source: FXStreet
