Dollar Strength Reaches New Highs as US Economy Shows Resilience

The US dollar is holding near its yearly highs due to strong support from the Federal Reserve's hawkish stance, according to ING. The DXY index has reached 101.80, a level it hasn't seen since earlier this year.

ING's Chris Turner notes that consumer spending data is resilient and payroll growth is accelerating again, as indicated by the monthly ADP report released yesterday.

The market expects firm ISM readings in the coming days, which will further solidify the need for the Fed to tighten monetary policy. This has led to dollar debasement fears being set aside, at least for now.