Currency Buzz: Dollar On Firm Footing As Treasury Yields Hit 2% For First Time Since 2019

11 Feb 2022 , 11:44 AM

Sharp spike in US treasury yields, returning for the first time to pre-pandemic levels dragged the dollar higher overnight. US benchmark 10-year treasury yields jumped to its highest level since 2019, breaking above 2%, after hotter-than-expected US inflation and hawkish comments from a Federal Reserve official fuelled bets for a more aggressive tightening. US Headline CPI in January rose at an annual rate of 7.5%. The year-on-year pace of US inflation was the highest in nearly 40 years. Annual core Inflation rate rose to 6.0% for the month, up from a previous 5.5%. Higher-than-expected US inflation figures propelled the dollar back to the 96.00 barrier. The US Dollar Index (DXY), which tracks the greenback against a bundle six currencies is currently quoting at 95.97.

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