On Tuesday, the US Dollar rose to an 10-month high as U.S. bond yields their highest level since October 2007. Meanwhile, Japanese Yen recovered from an early dip, making traders alert for signs of government intervention.
Neel Kashari, Federal Reserve policymaker, stated that given the strength of US economy, interest rates should probably rise again and be “higher for longer” as long as the inflation plunges to 2%.
Higher U.S. yields helped the currency to reach new heights, pushing the dollar index to 106.2, the highest since November 2022, when it was at 105.96. The euro was last up 0.1% against the dollar at $1.0596, having its lowest since March at $1.057 earlier in the session.
As for yen, the brief rally of dollar damaged the Japanese currency as at one point it fell past the 149 per dollar, which is the lowest since October 2022.
“The dollar is just a steamroller, it’s absolutely extraordinary,” stated Joe Tuckey, head of FX analysis at broker Argentex.