Forex
Home›Forex›Major Pairs›Dollar Index rises as Treasury yields surge and market…
Dollar Index rises as Treasury yields surge and markets turn hawkish
Deutsche Bank links the move to a late-week pickup in Treasury yields and a repricing toward a more hawkish Federal Reserve, weighing on non-yielding assets like gold.
FXStreet reports that Deutsche Bank’s Jim Reid and team said the US Dollar was the strongest-performing G10 currency last week as Treasury yields surged and markets repriced toward a more hawkish Federal Reserve.
According to the note, the Dollar Index increased, while gold prices fell because higher real and nominal yields pressured non-interest-bearing assets.
The report also points to broader credit spread widening alongside resilient equity performance.
In a related market snapshot, FXStreet highlights AUD/USD holding near 0.7000 early in the week, with US yields near multi-year highs and bets building for an October Fed rate hike.
Latest closeGold $4,320.50 ▲0.5%|Dollar index 101.03 ▼0.2%