(Bloomberg) — A gauge of the dollar rose toward a one-month high as Treasury yields climbed while investors sought more clues on the timing for a US interest-rate cut.
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The Bloomberg Dollar Spot Index gained as much as 0.3% to 1,230.38. An advance beyond the Jan. 5 high of 1,231.44 would bring the gauge to the highest since mid-December.
Investors are awaiting a speech by Federal Reserve Governor Christopher Waller scheduled for Tuesday after the Chair Jerome Powell gave the clearest signal yet that a series of rate cuts were in the pipeline for 2024. Treasury yields rose across the curve as trading resumed after a US holiday.
The dollar’s gain has been driven by higher US yields, said Mingze Wu, a currency trader at Stonex Financial Pte. in Singapore. “It might just be the market is finally out of hungover mood and having their clarity moment that Powell might not be cutting rates at all this year.”
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