Dollar Index Soars to Two-Month High on Rising Treasury Yields
The US Dollar Index (DXY) surged to a two-month high as Treasury yields rose across the curve. The index broke above 101.00 for the first time since late July, after gains in nine of the past 12 sessions that reversed two straight monthly declines.
The move tracked a jump in yields: the 2-year approached 5.00% for the first time in more than two years, while the 10-year reached 5.20%, its highest since June 2007, and the 30-year also moved above 5.20%, last seen in early June 2002.
Markets are pricing in further Federal Reserve tightening, with about 36 basis points of additional tightening expected by year-end. The focus is on upcoming labor market data releases, including JOLTS job openings and Nonfarm Payrolls, which can trigger sudden swings in major currency pairs like EUR/USD.