Dollar Index Below 99.00 Amid Steady Yields and Gulf Tensions
The US Dollar Index (DXY) is trading around 98.80 as of Friday's early European hours, after registering minor gains in the previous day.
This comes as the 10-year US Treasury yield remains steady at 4.7%, despite Washington's efforts to curb elevated yields through a long-end bond buyback program.
US Treasury Secretary Scott Bessent indicated that accelerated debt buybacks could surpass the planned $4 billion per issue, and noted that an upcoming fiscal plan is currently in development.
The US budget deficit is expected to have peaked under President Trump, according to Bessent's comments.
Safe-haven demand for the US Dollar may revive as oil prices surge due to diplomatic deadlocks in the Gulf, reinforcing ongoing inflation concerns and Federal Reserve rate hike bets.