Dollar rises as bond yields rise ahead of Fed expectations

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The US dollar rose today and the 10-year Treasury yields are close to a 13-month peak ahead of the US Federal Reserve meeting, which may shed some light on the timing of future interest rate hikes and the bank’s tolerance for higher yields.

It is expected that policymakers will release expectations of recording the fastest rate of economic growth in the United States in the wake of the vaccination campaign to prevent Covid-19 and a new stimulus of 1.9 trillion dollars, according to “Reuters”.
Dealers in the market will pay attention to any signs that the central bank will start raising interest rates in 2023, which is earlier than previously announced.

In all cases, expectations of a faster than expected economic recovery are expected to have an impact.

The euro fell 0.07 percent to $ 1.1893, after falling in the previous three sessions.

In early trading in Europe, the dollar index rose 0.09 percent to 91.953 after recording gains during the previous three consecutive sessions, mainly supported by higher US bond yields.

Against the yen, the US currency rose 0.15 percent to 109.14, hovering near its nine-month high it reached this week.

The pound rose 0.14 percent to $ 1.3914, recovering from profit-taking sales, after reaching its highest level in nearly three years last month on the back of a rapid vaccination campaign.





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