Dollar Surpasses 101 as Fed Hikes Interest Rates Amid Elevated Oil Prices
The US Dollar Index (DXY) has surpassed the 101 level after a limited intraday volatility on Monday, September 28. This development comes as the Federal Reserve raised the target range for the federal funds rate by 25 basis points to 3.75%, 4.00% in its FOMC meeting on September 15-16.
US Treasury yields have also increased: the two-year yield stands at approximately 4.90%, the ten-year at around 5.20%, and the thirty-year at roughly 5.51%. Crude oil remains elevated, trading above $90 per barrel due to unresolved conflicts related to the Strait of Hormuz.
The preliminary S&P Global US Composite Purchasing Managers' Index (PMI) for September rose to 58.4. However, the simultaneous occurrence of rising prices and a contraction in speculative long positions represents a critical contradiction in market dynamics.