Dollar Soars to Two-Week High Amid Anticipation of U.S. Jobs Report
The dollar reached a two-week high against the euro and yen on Monday, as traders reassessed expectations for the Federal Reserve's policy easing. A critical U.S. jobs report due at the end of the week shifted focus. The dollar's robust performance was driven by rising Treasury yields and steady inflation.
The dollar climbed to a two-week high against the euro on Monday, fueled by traders scaling back aggressive policy easing bets for the Federal Reserve. Attention has now turned to a pivotal U.S. jobs report due at the week's end.
Buoyed by rising long-term Treasury yields, which hit their highest levels since mid-August, the dollar also reached its strongest since Aug. 21 against the yen. This yield rise came after a key U.S. inflation measure remained steady, reducing the urgency for a significant rate cut by the Fed.
The dollar index, measured against major peers, edged up to 101.79 early in the Asian session—the highest since Aug. 20. The euro, meanwhile, dipped slightly to $1.10430. With traders placing 33% odds on a 50-basis-point Fed rate cut this month, analyst Tony Sycamore speculates that recent dollar strength might not last if key resistance levels aren't breached.
(With inputs from agencies.)
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