US Dollar Reaches Highest Level in Two Weeks, Driven by Rise in Treasury Bond Yields

The US dollar rose to its highest level in two weeks, supported by a rise in US Treasury bond yields, with investors questioning market expectations of six interest rate cuts during 2024.

Reuters noted that trading in Asia was relatively weak in light of the holiday in Japan and the market’s anticipation of the release of some US economic data later today, including the minutes of the US Central Bank’s December meeting.

She confirmed that the dollar rose against a number of currencies, as the dollar rose 0.3% at 102.59, after earlier touching the highest level in two weeks at 102.61.

While the euro fell 0.3% to $1.0906, after falling earlier to $1.09050, its lowest level since mid-December.

Reuters reported that the slowdown in inflation and the tendency to ease shown by the US Central Bank at the monetary policy meeting in December led to an increase in bets on lowering interest rates in 2024, a decline in the dollar, and a rise in Treasury bonds and stocks in November and December.

The dollar index hit its lowest level in five months at 100.61 last week.

2024-01-03 22:56:27
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