Currency Buzz: Dollar Index Renews Fresh Two Decade Highs

7 Sep 2022 , 03:18 PM

The US dollar index tracks soaring benchmark US treasury yields and retests fresh two decade peaks on firmer bets that the Federal Reserve will extend aggressive stance on rate hikes. A report overnight showed the U.S. services industry unexpectedly picked up last month, supporting the view that the economy is not in recession and giving further space for the Fed to go ahead with tightening. The dollar index that measures the greenback against a basket of currencies is hovering at 110.37, up 0.15% after hitting a high of 110.59 earlier in the day. US treasury yields were close to 3.5%. Meanwhile, euro that carries maximum weight in the basket continues to stay below parity against the dollar at $0.99.Powered by Commodity Insights