Dollar Hits 16-Month Highs Amid Rising Yields and Economic Data Anticipation
The US dollar continues to climb, reaching 16-month highs against the euro and Swiss franc on Tuesday. The greenback's strength is largely due to rising Treasury yields, which have hovered near multi-year highs.
Investors are positioning themselves ahead of key economic data releases, including August's Personal Consumption Expenditures index and September's nonfarm payrolls report. These indicators will help the Federal Reserve gauge whether its interest rate-hiking cycle is justified.
The euro has fallen to a 16-month low against the dollar, with the currency struggling in the face of global energy shocks and growing political risks in Europe. The Australian dollar also weakened after the Reserve Bank of Australia raised interest rates as expected.