The dollar reached a seven-week high on Wednesday as investors focused on the US currency amid mounting concerns about the economic impact of the energy shock and divergent monetary policy courses in key economies.
The United States and Iran resumed hostilities on Wednesday following the most substantial exchange of fire in weeks. The dollar tends to profit from rising oil prices since the US economy is less vulnerable to energy shocks than many other major economies, increasing demand at the expense of currencies like the euro and yen.
While most economists believe the European Central Bank will be nearing the conclusion of its tightening cycle following next week’s widely anticipated rate hike, the Federal Reserve faces an increasing possibility of needing to tighten policy in 2027. The dollar index, which measures the US dollar against a basket of currencies including the yen and the euro, climbed 0.11% to 99.76 after reaching 99.808, its highest level since August 17. The euro fell 0.16% to $1.1575 after hitting $1.1570, its lowest level since August 20.
The yield on the benchmark US 10-year note surged to 4.812%, the highest since November 2023, before falling to 4.804%. Japan’s benchmark 10-year yield rose to 3.01% on Wednesday, following a three-decade high of 3% on Tuesday.
Also Read:
Modi Laments the 11 Fatalities from Explosions at An Indian Rock Firecracker Factory
With 4.34 Million Seats in September, Dubai Airport has The Highest Capacity in the World
About Author
