The dollar strengthened against the pound and the euro yesterday due to a surge in US treasury yields.
This surge has been caused by a ‘hawkish’ stance from the Federal Reserve, which said last week that it will likely begin reducing its monthly bond purchases as soon as November. The dollar is also benefitting from its status as a ‘safe haven’ currency amid the global energy crisis.
Fed Chair Jerome Powell is testifying in front of Congress this week and is expected to say that higher inflation could last longer than expected.
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