The dollar has risen in the past three weeks and is heading towards achieving gains for the fifteenth session out of 17, as a series of positive economic data reduced expectations about the size and speed of reducing US interest rates.
The yield on 10-year US Treasury bonds reached 4.222 percent on Tuesday, its highest level since July 26.
The CME Group’s Fed Watch tool shows that markets expect 91 percent of interest rates to be cut by 25 basis points in November, and see a nine percent probability that they will remain… Federal Reserve Board on it without change.
Price movements
The dollar index, which measures the performance of the US currency against a basket of currencies, rose 0.04 percent to 104 after reaching 104.08, its highest level since August 2.
The index rose by about 3.3 percent on a monthly basis and is heading towards its highest monthly rise since April 2022.
And retreat sterling 0.06 percent to $1.2976.
The upcoming US presidential elections are still casting a shadow on the currency market with increasing expectations of Donald Trump’s victory, which will likely lead to policies to control inflation.
The euro fell 0.04 percent to $1.0811.
European Central Bank President Christine Lagarde said on Tuesday that inflation in the euro zone is on the way to decline and may fall to two percent faster than thought.
The dollar rose 0.09 percent against the yen to 150.96 after rising to 151.10, its highest level since July 31.
In terms of cryptocurrencies, Bitcoin fell 0.23 percent to $67,572.