Dollar Triumphs: Extends Longest Winning Streak Amid Bond Yield Rise

The U.S. dollar is set to extend its longest weekly winning streak in over a year, driven by rising bond yields and strong job numbers. It has strengthened against the yen and British pound, with a stable performance against the euro and small gains against Australian and New Zealand dollars. The U.S. economy's resilience contrasts with global economic weaknesses, supporting the dollar's upward trend.

The U.S. dollar appears poised to continue its winning streak, reaching its longest in over a year, supported by surging bond yields and robust expected job data. This week, it climbed 0.5% against the yen and more than 1% against a weakened British pound, which dropped to a 14-month low.

This marks a stable performance for the dollar against the euro, as it achieved small gains against the Australian and New Zealand dollars. The dollar index is set to gain for the sixth consecutive week, its longest ascent since a remarkable streak in 2023, highlighting the strength of the U.S. economy amidst global economic fragility.

Despite potential profit-taking risks, Chris Turner, ING's global head of markets, argues that the dollar's recent gains are well-supported. Upcoming U.S. payroll data and bond market volatility, driven by Federal Reserve rate expectations and geopolitical factors, continue to influence market dynamics and the dollar's trajectory.

(With inputs from agencies.)