Dollar Rallies on Higher Bond Yields and Hawkish Fed Speak

The dollar index (DXY00) on Thursday rose by +0.63% and posted a 2.25-month high.  Higher bond yields on Thursday were supportive of the dollar, along with weakness in stocks, which sparked some liquidity demand for the dollar.  Gains in the dollar accelerated on Thursday on hawkish comments from Fed Governor Michael Barr, who called for a cautious approach to further Fed rate cuts.  Political risks in France and Japan are undercutting the euro and yen, respectively, to the benefit of the dollar. The ongo ...