Dollar Rises as Yields Near Multi-Year Highs, Aussie Weakens
The US dollar rose against major currencies on Tuesday as investors positioned for economic data that could offer clues on the Federal Reserve's interest-rate path. The Treasury yields hovered near multi-year highs, with the benchmark 10-year yield settling above 5%. This has kept investors closely watching concerns about crude supply disruptions linked to the Middle East conflict.
The Australian dollar weakened after the Reserve Bank of Australia raised interest rates as expected. Investors are now monitoring a number of Fed speakers and economic data releases this week, including the Personal Consumption Expenditures (PCE) index on Wednesday and September's nonfarm payrolls report on Friday.
Markets see a near 70% chance of a rate hike by the Federal Reserve at the end of October. The dollar index rose 0.2% to 101.39, hitting its highest level since July 28. Brent crude futures were down 0.69% to $104.56 a barrel.
Eugene Epstein, head of trading and structured products at Moneycorp, said: 'At this point, we're just going data point to data point.'