Forex
Dollar Rallies to Multi-Decade High Amid Fed Hawkishness
The US Dollar Index reached its highest level in late July since last week, hitting near 101.40 before dropping to around 101.00 on Friday.
This rally was driven by hawkish Federal Reserve remarks from Philadelphia Fed President Anna Paulson, who reinforced expectations of restrictive policy while keeping a 2% inflation objective.
The dollar's strength also lifted the 10-year US Treasury yield above 5.2%, its highest level since June 2007.
Currency pairs such as EUR/USD and GBP/USD were pressured by the dollar's rally, with EUR/USD falling below 1.1400 and GBP/USD struggling after a 1% weekly drop.