Dollar Climbs To Its Strongest Level For Nearly Two Months

Rising US government bond yields are supporting a jump for the dollar, the US currency having its best session for nearly a month. The dollar index was climbing 0.4% to its highest level since the beginning of March. Treasury yields are continuing to stand out as investors continue to sell government debt, as investors refine their outlook for global monetary policy ahead of two major central bank meetings this week.

Expectations that the Federal Reserve would raise interest rates three more times in 2018 was also supporting the greenback. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.4% to 90.44, the strongest level since March 1.

The dollar rose to more than two-month highs against the safe haven yen, with USD/JPY up 0.4% to 108.10. The euro slid to two-week lows, with EUR/USD down almost 0.5% to 1.2230. Sterling was also lower, with GBP/USD slipping 0.2% to 1.3971.

Dollar strength was pushing the euro down 0.4% to $1.2233 while the pound is off 0.3% to $1.3966. Japan’s yen is 0.5 per cent weaker at ¥108.19 per dollar.

The stronger greenback was also having an impact on commodity assets measured in the US currency. Oil prices slipped with US marker West Texas Intermediate off 0.4% to $68.11 while Brent crude was down 0.3 per cent to $73.86 a barrel.

Priced dipped on Friday after a tweet from Mr Trump calling oil prices “artificially high”.

Gold was down 0.5% to $1,328.70 an ounce after touching its lowest intraday level in two weeks earlier in the session.