The US dollar strengthened in thin holiday-affected trading on Tuesday, maintaining recent strength as traders brace for fewer Federal Reserve interest rate cuts in 2025.
At 4:25 AM ET (09:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 0.1% higher at 107.905, near a recent two-year high.
The dollar has been in demand since the Federal Reserve outlined a hawkish outlook for interest rates after its final policy meeting of the year last week, projecting just two rate cuts of 25 basis points in 2025.
In fact, markets are now pricing in just about 35 basis points of easing for 2025, which in turn has sent U.S. Treasury yields soaring, boosting the dollar.
The two-year Treasury yield was last at 4.34%, while the benchmark 10-year yield was steady near a seven-month high of 4.59%.
"We think this aggressive readjustment of Fed communication will set the stage for continued dollar strength in the new year," analysts at ING said in a note.
Trading volumes are likely to thin as the year-end approaches, with this trading week shortened by the festive period.
Source: Investing.com
The dollar flirted with a two-month peak on Thursday after Federal Reserve Chair Jerome Powell stuck to his patient approach on rates in a closely watched policy decision and offered little insight on...
The dollar advanced against major peers on Wednesday following better-than-expected U.S. GDP data and as investors awaited the outcome of the Federal Reserve's policy meeting later in the session. U....
The US dollar index weakened on Wednesday (July 30th), snapping a four-day winning streak as investors remained cautious ahead of the Federal Reserve's policy meeting, following a sharp reaction to th...
The US dollar (USD) held firm on Tuesday (July 29th) after posting its strongest daily gain since May, gaining 1.0% on Monday. This rally came after the United States (US) and the European Union (EU) ...
A dollar index remained steady as traders weigh US-China trade talks ahead of key economic data releases expected later this week. The Bloomberg Dollar Spot Index little changed on Tuesday after...
Gold rose, reversing some of the previous session's losses as traders reduced their bets on a September interest rate cut from the US Federal Reserve. Bullion rose 0.7% to trade near $3,299 an ounce, following a decline in the dollar after Fed...
Oil prices held gains this week as traders grappled with President Donald Trump's threat to impose punitive tariffs on Russian energy buyers. West Texas Intermediate crude oil prices were little changed on Thursday, but closed at a six-week high...
Annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, rose to 2.6% in June from 2.4% in May (revised from 2.3%), the US Bureau of Economic Analysis reported on Thursday....
European stock markets closed higher in Tuesday trading as the Stoxx Europe 600 was up 0.33%, Germany's DAX climbed 1.03%, the FTSE 100 gained...
Europe's Stoxx 600 index erased earlier gains to close 0.23% lower as investors turned less positive over the details of the U.S.-EU trade...
The European Union and the U.S. will form a "metals alliance" to counter the impact of subsidised Chinese production on global markets, as part of...
US stocks maintained modest gains on Tuesday (July 29) as the market digested a series of earnings reports ahead of key economic developments. The...