Dollar rose in European trade on Wednesday against a basket of major rivals, extending gains for the fourth day in a row and scaling a two-week high as US 10-year treasury surged in tandem.
The gains come ahead of important US data, and the Federal Reserve's last meeting minutes, expected to provide clues on the future path of US interest rates.
The Index
The dollar index rose 0.25% to 102.40, the highest since December 21, with a session-low at 102.08, after rallying 0.85% on Tuesday alongside US treasury yields.
US Treasury Yields
US 10-year treasury yields rose 1.4% on Wednesday, maintaining gains for the fourth session in a row, almost hitting a three-week high at 4.024%.
Markets are now pricing in a 77% chance of a 0.25% interest rate cut by the Federal Reserve at the March meeting, with a 98% chance of such a cut in May.
Crucial Data
Now investors await a wide variety of US data later today on manufacturing and job opportunities, to gauge the strength of the labor sector.
Fed's Minutes
Investors also await the Federal Reserve's last meeting minutes, at which the Fed decided to maintain interest rates flat while hinting at upcoming interest rate cuts in 2024.
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