Forex
Greenback Surges to Two-Month Highs on Stronger Growth and Rising Yields
The US dollar surged to two-month highs on Wednesday as stronger-than-expected economic growth and rising bond yields boosted demand for the greenback.
The benchmark US 10-year Treasury yield jumped from 4.96% to 5.11%, its highest level since 2007, while US equities fell with the Dow Jones down 0.7%, the S&P 500 losing 0.8%, and the Nasdaq dropping 1.1%.
The stronger-than-expected data reinforced expectations that the Federal Reserve may need to deliver further rate hikes, lifting US yields and supporting the greenback against all major currencies.