DXY Rebounds on Energy Prices and Rising Yields

The US dollar index (DXY) has rebounded from its recent low near 99.40, indicating that the currency is not yet ready for a sustained decline.

This rebound is attributed to higher energy prices and rising 30-year Treasury yields, which could revive expectations for a Federal Reserve rate hike in September.

The Washington administration appears uninterested in extending the 60-day ceasefire with Iran, pushing oil and gas prices higher again.

A significant sell-off in the long end of the Treasury market would typically hurt emerging market currencies and risk assets, but that point has not been reached yet.