US Dollar Surges to Best Level Since Late July on Fed Rate Hike
The US dollar has been on a roll in recent sessions, reaching its best level since late July. The Dollar Index (DXY) surpassed 100.55 ahead of the weekend, marking a 61.8% retracement of its decline from the year's high of around 101.80 on June 24.
The dollar also jumped over 2% against the yen after the Bank of Japan delivered a widely anticipated rate hike. However, it pulled back and settled about 0.50% better than before.
The greenback has risen against the Canadian dollar for eight consecutive sessions, with a significant appreciation of almost 1.7% during this period.
The near-term movement of the dollar remains sensitive to changes in US rates. The Federal Reserve's recent rate hike, which was widely anticipated by a unanimous decision, saw the two-year yield rise slightly.