Dollar Surges to Two-Month High Amid Hawkish Fed Bets
The US dollar is poised to record its first back-to-back weekly gains in over three months, as Treasury yields surge and expectations of further Federal Reserve rate hikes intensify.
The dollar index, which measures the greenback against a basket of peers, has climbed more than 1% this week to a two-month high. This marks its first consecutive weekly gains since June.
The euro hit a two-month low of $1.1370 and is on track for a third straight weekly decline, its worst losing streak since the end of 2025. Sterling languished near a three-month low of $1.3220 and was poised for its worst weekly performance in four months.
A chorus of hawkish Fed speakers, including Philadelphia Fed President Anna Paulson and New York Fed President John Williams, has strengthened expectations of further tightening. This, combined with robust economic data and fresh energy supply concerns, has boosted the dollar's appeal.