US Dollar Surges to Fresh Year-To-Date High Amid Elevated Yields

The US Dollar has reached a fresh year-to-date high, supported by elevated US Treasury yields following the latest economic data. At the time of writing, the US Dollar Index trades around 101.75 after touching a new yearly high of 101.99 earlier in the day.

Fresh labour-market data showed Initial Jobless Claims fell to 197K in the week ending September 26, below expectations and the previous reading. The four-week moving average declined to 200K from 202.5K.

The figures follow Wednesday's ADP report, which showed private-sector employment increased by 90K in September, beating forecasts. Second-quarter US Gross Domestic Product was revised higher to an annualized rate of 2.2% from 1.5%.

However, markets have scaled back expectations that the Federal Reserve will raise interest rates this month following softer-than-expected inflation data released on Wednesday. Core PCE inflation rose 0.2% MoM in August, below forecasts, while the annual rate remained unchanged at 3.0%, undershooting expectations.