Sharjah24 – Reuters: The dollar hovered near its highest levels in a year against a basket of peers on Thursday on rising expectations the Federal Reserve will taper stimulus from November, while a bounce in iron ore prices boosted the commodity-linked Australian dollar.
The safe haven greenback has made sharp gains over the last two sessions on concern the Fed could withdraw economic support as global growth slows and high inflation is high. Spiking bond yields added to the currency's strength.
Its rise is despite an impasse in Washington over the U.S. debt ceiling that threatens to plunge the government into a shutdown.
The dollar index - which measures the currency against a basket of six rivals - stood at 94.294, little changed from Wednesday, when it hit 94.435 for the first time since late September last year.
Yields on the benchmark 10-year Treasury note stood at 1.5289%, holding near a mid-June high reached Tuesday at 1.5670%.
"The move (in the dollar index) was widespread and on the day not accompanied by any particularly large rises in US yields nor large equity corrections lower," ING said in a note to clients. "It feels like the move might have been driven by quarter-end corporate and institutional flows."
The dollar bought 111.91 yen, little changed from Wednesday, when it reached 112.05 for the first time since February 2020. It was on track for its worst monthly performance since March.
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