Dollar Climbs Amid U.S. Economic Surge and Fed Rate Speculations

The dollar appreciated for a second day following strong U.S. economic data and rising bond yields, challenging expectations of Federal Reserve rate cuts. Meanwhile, foreign currencies struggled and markets focused on upcoming U.S. labor data and Donald Trump's imminent policy announcements.

The dollar surged for a second consecutive day on Wednesday as robust U.S. economic data led to increased bond yields and quashed some speculations about imminent Federal Reserve rate cuts.

U.S. job openings exceeded expectations in November, with low layoff rates bolstering the economy. Simultaneously, U.S. services sector activity surged in December and input prices spiked, signaling potential inflation concerns.

These developments saw 10-year bond yields rise over eight basis points, reaching an eight-month peak. Currency markets braced for further moves as traders anticipated key U.S. labor data and policy shifts from Donald Trump's upcoming presidency.

(With inputs from agencies.)