Dollar Index Hits Four-Week High as Hawkish Fed Comments Boost USD

The US Dollar Index extended its weekly rally to reach its highest level since late July near 101.40 before entering a consolidation phase and correcting lower toward 101.00 on Friday.

Hawkish comments from Federal Reserve officials helped the USD continue to outperform its rivals, while the benchmark 10-year US Treasury bond yield climbed above 5.2% for the first time since June 2007.

Philadelphia Federal Reserve President Anna Paulson delivered a distinctly hawkish message, stressing that the US central bank may need to raise interest rates again and that underlying inflation remains stubbornly high amid resilient growth and AI-driven price pressures.