Precise Investors Editorial Team
The dollar index was a touch higher at 101.27 and on track to rise 1.8% this month, its best performance since June
The dollar inched higher on Tuesday to hover near a two-month high as volatile oil prices and a rapid climb in Treasury yields lent support, though gains were limited as traders awaited US data this week for clues to the central bank’s rate path.
The dollar index was a touch higher at 101.27 and on track to rise 1.8% this month, its best performance since June.
Oil prices crept back up, with Brent crude futures above $107 a barrel as markets doubted the success of renewed efforts to end the Iran war.
A deepening selloff in US Treasuries pushed yields to new highs, with the 10-year benchmark at its highest since 2007 and the 30-year at its highest since 2004.
The monetary policy-sensitive two-year yield also rose to its highest in more than two years, closing in on 5%.
I think the US dollar is just going to keep growing a little bit higher, said Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia.
We’re more likely to get stronger US economic data which shows that the US economy is exceptional, and I think that’s going to help to push up US interest rates compared to elsewhere, and help push up the US dollar, he said.
US data due later in the week, including the PCE price index on Wednesday and nonfarm payrolls on Friday, is expected to support the case for further central bank rate hikes.
Markets now see a more than 70% chance of a rate hike by the central bank at the end of October, up from 57% a week ago, according to CME Group’s FedWatch tool.
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