Dollar Soars to 16-Month High Amid Rising Yields
The US dollar has hit a 16-month high against both the euro and Swiss franc as investors position themselves for economic data that may influence the Federal Reserve's interest rate decisions.
Treasury yields have hovered near multi-year highs, with the benchmark 10-year yield settling above 5%, its highest level since June 2007.
Eugene Epstein, head of trading and structured products at Moneycorp, said, 'At this point, we're just going data point to data point. We're looking at jobs and inflation data to find out whether or not the current Fed board is justified in the hawkishness that they've been implying.'
The dollar has also remained near multi-month highs against other major currencies as investors await August's Personal Consumption Expenditures index due on Wednesday, which is closely watched by the Fed.