Dollar keeps climbing as oil, US yields stay high; jobs data looms
UUP•The dollar rose as oil prices and US Treasury yields stayed high, with investors awaiting inflation and payrolls data. The euro fell 0.24% to $1.1344, while the Australian dollar dropped 0.44% after the Reserve Bank of Australia raised its cash rate to 4.60%.
1. Dollar gains
The dollar rose on Tuesday, supported by higher oil prices and rising Treasury yields. The euro fell 0.24% to $1.1344, a three-month low, while the pound slipped 0.2% to $1.3228 and the Swiss franc weakened to 0.8335 per dollar.
2. Yields and oil rise
The two-year Treasury yield reached its highest level in two years and neared 5%. Brent crude futures climbed above $106 a barrel as markets doubted renewed efforts to end the Iran war would succeed. Markets priced in more than a 70% chance of a Federal Reserve rate hike at the end of October, up from 57% a week earlier.
3. Aussie falls after hike
Australia’s central bank raised its cash rate to a 15-year high of 4.60%, but the Australian dollar fell 0.44% to $0.6988 after briefly rising to $0.7029. The dollar’s next test is US PCE inflation data on Wednesday and nonfarm payrolls on Friday.
