Dollar Index Rises On The Back Of Surging Treasury Yields; US GDP Data Eyed

Published on Oct 26, 2023 11:58

The dollar index climbed on the back of surge in US benchmark treasury yields ahead of US GDP and PCE data due this week that could provide further clarity for FOMC decision that is scheduled for next week. Expectations of resilience in the US economy could encourage Fed to keep rates higher for longer period of time is keeping yields elevated. Data from the US overnight showed a surprising increase in New Home Sales in September, reaching an annual 759,000, surpassing the market consensus of 680,000. Besides, escalating tensions from the Middle East is also keeping demand high for the safe haven greenback. The dollar index that measures the greenback against a basket of currencies is quoting at 106.60, up 0.22% on the day. Meanwhile, fading momentum in euro that comprises more than 50% in the index is also benefiting the dollar index.