Dollar Soars Amid Rate Hopes and Oil Surge Past $100
The US dollar has surged as markets anticipate interest rate decisions from major central banks. The dollar index rose by 0.23% to 99.34 points, while the euro fell 0.28% to $1.1565 and sterling stood at $1.3503.
US Treasury yields remain near multi-year highs, with the two-year yield reaching 4.61% after a 26 basis point increase last week. The European Central Bank had raised interest rates recently, warning of potential further hikes, while the Bank of England is expected to keep rates unchanged this Thursday.
The yen has gained about four percent since September's start, boosted by expectations that the Bank of Japan will accelerate its rate hike pace and Japanese investors repatriating assets. Brent crude futures have risen two percent to $106.7 per barrel amid supply concerns following attacks in the region and a major Saudi oil pipeline closure.