Dollar and Treasury Yields Surge After Fed Rate Hike

The U.S. dollar and Treasury yields have continued their joint rally following the Federal Reserve's rate hike, according to recent market trends.

The Dollar Index (DXY) measured against six major currencies hovered around 99.5 before the Fed's announcement but jumped 0.6 points to 100.21 immediately after, setting a new high since July 31.

This upward trend persisted, rising 0.7 points from the previous session (99.61) to 100.32 as of 6:00 p.m.

Scotiabank attributed this interest rate path outlook to the dollar's strength, with TD Securities also noting that if the dot plot leaves open the possibility of an additional hike in October, the dollar's strength could extend further.