Dollar Flies High on Oil and Yields, but US Data Looms Large
The US dollar held near its two-month high on Tuesday, September 29, as market volatility and rising Treasury yields lent support to the currency. Oil prices also contributed to the dollar's strength, with Brent crude futures hovering around $106 a barrel after doubts emerged about renewed efforts to end the Iran war.
The euro traded near its weakest level in three months at $1.1367 after European Central Bank Chief signaled measured steps to combat inflation. Meanwhile, Sterling remained steady at $1.3248, also close to a three-month trough.
Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia, noted that investors were awaiting US data releases later in the week, which include the PCE price index on Wednesday and nonfarm payrolls on Friday. These releases are expected to support the case for further Federal Reserve rate hikes.