Dollar Index Surges on Fed Rate Hike Expectations

The U.S. Dollar Index rose today due to expectations of a Federal Reserve rate hike.

The index reached 99.463, an increase of approximately 0.4% for the day.

This growth occurred after the yield on the U.S. 10-year Treasury note surpassed 5%, its highest level since October 2023.

Steven Barrow, Head of G10 Strategy at Standard Bank, has raised his year-end forecast for the 10-year U.S. Treasury yield to 5.2% and expects it to reach 5.3% in the first quarter of 2027.