US Dollar Refuses to Follow Rising Real Yields

The US dollar's response to rising real yields has been muted, suggesting that policymakers' efforts are creating uncertainty over how far market rates will rise.

US real yields have stayed elevated, but the dollar's lackluster reaction indicates that investors are demanding compensation for this uncertainty elsewhere.

The Canadian dollar remains strong due to solid retail sales and positive trade sentiment ahead of the tariff deadline. The Mexican peso is trading at a 52-week low against the dollar, still supported by its carry advantage.