HomeLatestU.S. dollar index reaches highest in about 10 months

U.S. dollar index reaches highest in about 10 months

NEW YORK, Sept. 26 (Xinhua) — The U.S. dollar gained in late buying and selling on Tuesday, because the market remained nervous for the hawkish rate of interest projections from the Federal Reserve.

The benchmark U.S. Treasury 10-year yield rose a few foundation factors to close 4.57 p.c early Tuesday, the best since 2007, earlier than it pulled again.

Higher Treasury yields lifted the U.S. dollar, with the dollar index, which measures the buck in opposition to six main friends, was up 0.22 p.c at 106.2270 in late buying and selling, its highest in about 10 months.

President Joe Biden on Tuesday requested Congress in a social media put up to fund the federal government as warnings grew {that a} looming shutdown may hurt the U.S. credit standing and dollar. Moody’s and Wells Fargo warned this week {that a} shutdown would negatively affect the U.S. economic system.

Meanwhile, The Conference Board’s shopper confidence index fell for a second consecutive month, dropping to 103 in September from an upwardly revised studying of 108.7 a month earlier than.

The index is at its second-lowest degree this 12 months, touchdown simply above May’s 102.5 studying, in accordance with information. Consumer spending serves as a vital driver for U.S. financial development.

Minneapolis Fed President Neel Kashkari stated on Tuesday that he noticed a mushy touchdown for the U.S. economic system as extra probably, but in addition a 40 p.c likelihood that the Fed ought to increase charges considerably to fight inflation.

In an interview, JP Morgan Chairman Jamie Dimon stated Tuesday that the worst case could be 7 p.c rates of interest with stagflation, “If they are going to have lower volumes and higher rates, there will be stress in the system. We urge our clients to be prepared for that kind of stress. I am not sure if the world is prepared for 7 percent.”

In late New York buying and selling, the euro decreased to 1.0566 U.S. {dollars} from 1.0587 {dollars} within the earlier session, and the British pound was right down to 1.2157 U.S. {dollars} from 1.2208 {dollars}.

The U.S. dollar purchased 149.0710 Japanese yen, larger than 148.8090 Japanese yen of the earlier session. The U.S. dollar rose to 0.9152 Swiss francs from 0.9123 Swiss francs, and it was as much as 1.3521 Canadian {dollars} from 1.3471 Canadian {dollars}. The U.S. dollar fell to 11.0285 Swedish krona from 11.0561 Swedish krona.

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