Dollar Surges as Fed Signals Further Rate Hikes

The US dollar strengthened this week as the Federal Reserve signaled further rate hikes to combat inflation. The dollar index DXY, which measures the greenback against a basket of major currencies, rose 0.71% over the past week and is now at its highest level in six weeks.

The Fed raised interest rates by 25 basis points to 3.75-4%, while signaling another hike this year. The decision was supported by Federal Reserve Chair Jerome Powell's reiteration of the central bank's commitment to curbing inflation.

Despite a mixed performance from US Treasury yields, with the 10-year yield remaining steady at 5% and the 2-year yield increasing 7 basis points to 4.75%, the dollar continued its upward trend.