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Dollar hits fresh two-month high as yields rise and Fed hikes loom
The 10-year Treasury note yield rose to its highest in nearly two decades, while weekly jobless claims fell to 197,000, below estimates, reinforcing inflation worries.
The US dollar climbed to a fresh two-month high on Thursday as rising Treasury yields and expectations for further Federal Reserve rate hikes gained support, Reuters reported from New York.
Treasury yields continued to move higher after data pointed to a jump in business activity and mounting price pressures, with weekly initial jobless claims dipping by 1,000 to 197,000, below the 201,000 estimate in a Reuters poll.
The 30-year US bond yield was at its highest since June 2004, and the 10-year note yield reached its highest in nearly two decades after the economic data, according to Reuters.
Oil prices rose nearly 4% in choppy trading after a Houthi missile attack on Saudi Arabia revived supply disruption fears, Reuters noted, though gains eased after reports that the US and Iran discussed reopening the Strait of Hormuz. Since the Fed’s 25 basis point hike last week to a 3.75% to 4.00% range, several Fed officials have flagged additional increases if inflation does not ease.