Dollar Hovers Near 18-Month High
The dollar index held around 102 on Tuesday, remaining near its strongest levels since April 2025 as the euro faced pressure from growing political uncertainty and fiscal concerns across Europe. The common currency fell as much as 0.8% on Monday amid worries over elevated debt and political deadlock in France, while an upcoming snap election in Spain added to the headwinds. The dollar also found support from surging Treasury yields, with long-term US bond yields reaching their highest levels in more than two decades. The moves came as the global bond selloff persisted, fueled by rising fiscal risks and ongoing inflation concerns. ISM data showed that cost pressures in the US services sector rose at their fastest pace in more than four years last month. Meanwhile, markets are pricing in roughly a 78% chance that the Fed will leave interest rates unchanged this month following weaker-than-expected US jobs data.
The dollar index held around 102 on Tuesday, remaining near its strongest levels since April 2025 as the euro faced pressure from growing political uncertainty and fiscal concerns across Europe. 8% on Monday amid worries over elevated debt and political deadlock in France, while an upcoming snap election in Spain added to the headwinds. The dollar also found support from surging Treasury yields, with long-term US bond yields reaching their highest levels in more than two decades. The moves came as the global bond selloff persisted, fueled by rising fiscal risks and ongoing inflation concerns.
ISM data showed that cost pressures in the US services sector rose at their fastest pace in more than four years last month. Meanwhile, markets are pricing in roughly a 78% chance that the Fed will leave interest rates unchanged this month following weaker-than-expected US jobs data.