Dollar Surges to Two-Month High Amid Expectations of More Fed Rate Hikes
The US dollar reached a two-month high on Thursday amid growing expectations for Federal Reserve interest rate hikes, fueled by hawkish comments from several central bank officials and solid economic growth.
Treasury yields remained elevated due to inflation and growth concerns, with the 30-year US bond yield hitting its highest since June 2004 and the benchmark 10-year note at its highest in almost two decades. The data showed weekly initial jobless claims dipping by 1,000 to 197,000, below the estimated 201,000.
New York Federal Reserve President John Williams stated it was reasonable to think that the US central bank might need to raise interest rates again before the end of the year to combat inflation risks. Expectations for a rate hike of at least 25 basis points at the Fed's October meeting stood at 64.2%, up from 55.4% a week ago.