The US dollar approached its highest level in three months on Tuesday, supported by a rise in Treasury bond yields and in light of diminishing expectations that the US Federal Reserve (the central bank) will reduce interest rates significantly this year.
The dollar index, which measures the performance of the US currency against six major currencies, reached 104.42 points after touching 104.60 points yesterday, Monday, its highest level since November 14. The index has risen three percent since the beginning of the year so far, after falling two percent in 2023.
As for other currencies, the euro rose 0.02 percent to $1.0743, and the British pound reached $1.254, up 0.06 percent during the day, but remained close to the lowest level in seven weeks, which it reached yesterday, Monday.
The decline of the pound sterling yesterday, Monday, came despite some optimistic economic data.
The yen rose 0.07 percent to 148.56 per dollar, with the Japanese currency hovering around its lowest level in two months at 148.90, which it touched yesterday, Monday.
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