US dollar index rises above 102, 10-year bond yield nears 4.9 per cent
The US dollar index strengthened above 102, with the 10-year Treasury yield touching 4.905 per cent. The White House chief economic adviser said the Federal Reserve will monitor inflation data closely. Markets now see an 80 per cent chance of a rate rise in December.
The US dollar index and Treasury bond yields both rebounded on Friday, after October employment data provided room for the Federal Reserve to raise interest rates. Markets now estimate the likelihood of a rate increase in December at about 80 per cent, according to RTHK.
White House chief economic adviser Kevin Hassett said that when the Federal Reserve decides on the direction of interest rates at its upcoming meetings, it will closely monitor inflation data to take appropriate action. He also forecast that the pace of inflation would slow further.
The US dollar index rose above the 102 level to a high of 102.36, its highest in more than a week, representing an increase of more than 0.8 per cent.
The yield on the US 10-year Treasury note briefly rose to about 4.905 per cent, while the 30-year yield reached above 5.3 per cent. The two-year Treasury yield touched above 4.55 per cent.
Among other currencies, the Australian dollar and the New Zealand dollar both fell about 1 per cent against the US dollar, closing in New York at 0.686 and 0.553 respectively. Sterling fell to 1.334 against the greenback, and the euro dropped to 1.114. The US dollar strengthened to 158.5 against the Japanese yen.