Dollar Index Hits Fresh Ten-Month High

Published on Sep 26, 2023 11:41

The dollar index surged to a fresh 10-month high on Tuesday following benchmark US treasury yields that are hovering above 4.5%. Overnight comments from Minneapolis Federal Reserve Bank President Neel Kashkari at an event that given the surprising resilience of the U.S. economy, the Fed probably needs to raise borrowing rates further and keep them high for some time to bring inflation back down to 2% pushed the dollar index to hit fresh 10-month high, approaching the next crucial 106 mark. The dollar index is currently trading at 105.75. Meanwhile, Fed`s Goolsbee also reportedly stated that rates will have to stay higher for longer than markets had expected. Among th basket currencies, EURUSD is staying flat at $1.0626 whereas GBPUSD is down 0.09% on the day at $1.2201.