Dollar Rises to 3-Month High

Dow Jones
Oct 01

0642 GMT - The dollar rises to a three-month high against a basket of currencies after briefly pulling back in the previous session following lower-than-expected U.S. PCE inflation data. Minneapolis Federal Reserve President Neel Kashkari said price pressures remain elevated and the PCE data didn't "change that story for me very much." The dollar's continued strength comes after Treasury yields again hit multiyear highs earlier. It could also reflect a shift in positioning towards bets on the currency rising--which remain strong portfolio diversifiers during risk aversion--or fiscal concerns in the eurozone, especially with the spread between German and French government bond yields widening, Danske Bank's Antti Ilvonen says in a note. The DXY dollar index rises to a high of 101.663.

 

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