NEW YORK: The dollar index eased from a 10-month high on Thursday but remained on track for a weekly gain, and investors stayed on guard for potential intervention in the yen as it holds near 11-month lows against the US currency.
The dollar has jumped on expectations that the US economy will remain more resilient to higher interest rates than other economies, after the Federal Reserve last week warned that it may hike rates further and is likely to hold them higher for longer.
“The dollar in this environment is benefiting from both higher yields but also more jittery risk sentiment,” said Vassili Serebriakov, an FX strategist at UBS in New York. “Global yields are rising, but with the US economy outperforming the US dollar still looks attractive.”
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