Euro Slips as Williams Hints at More Rate Hikes

The Euro slipped against the US dollar on Thursday as New York Fed Governor John Williams delivered hawkish remarks, hinting at more Federal Reserve rate hikes. The DXY Dollar Index rose to near 101.17, nearing its eight-week high of 101.23 posted Wednesday.

Williams emphasized the 'remarkable resilience' in the US economy and noted that another rate hike by year-end is 'reasonable', reflecting persistent inflation concerns. Despite a slight decline in hawkish intensity as measured by the FXS Fed Sentiment Index, which slipped to 148.63 from 148.81, it remains above 100, signaling tighter policy.

The greenback's rise also boosted US Treasury yields, with 10-year bond yields reaching a fresh 19-year high at 5.14%.