US Dollar Index Surges to Fresh Yearly High Amid Strong Economic Growth

The US Dollar Index (DXY) has reached a fresh yearly high of around 102.18, rising by 0.70% on Thursday.

This rally is attributed to resilient US economic growth, a firm labor market, and stubborn inflation, which are supporting expectations of further monetary policy tightening by the Federal Reserve (Fed).

Elevated US Treasury yields also provide additional support to the Greenback by increasing the appeal of Dollar-denominated assets.