US Dollar strengthens following encouraging labor market data, higher US Treasury yields

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The US Dollar Index (DXY) rose toward 106.25 on Thursday and appears on track to test the November 1 high near 107.10.

DXY Index recovers and flirts with November highs. Initial Jobless Claims data came out slightly lower than expected. Fed’s stance remains hawkish, persistently increasing pressure on US yields. The US Dollar Index rose toward 106.25 on Thursday and appears on track to test the November 1 high near 107.10. What is underpinning this rise is the Federal Reserve's hawkish stance, along with a related recovery of US Treasury yields. Low Jobless Claims also benefited the US Dollar.

US Dollar FAQs What is the US Dollar? The US Dollar is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022.

 

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