Dollar rose in European trade on Tuesday against a basket of major rivals, extending gains for the third straight session and hitting a five-week high as US 10-year treasury yields rebound.
The odds for an early US interest rate cut in March also dipped somewhat as markets await more remarks by Fed officials.
The Index
The dollar index rose 0.6% to 103.31, the highest since December 13, after rising 0.2% yesterday, the second profit in a row amid strong investments.
US Yields
US 10-year treasury yields rose 1.6% on Tuesday, trading again above 4% and boosting investments in the dollar.
The developments as traders continue to reassess the odds of early US interest rate cuts this year.
Pricing for a 0.25% Fed interest rate cut at the March meeting fell to 69%.
Now investors await important remarks by Fed member Christopher Waller, whose remarks are usually influential on markets.
Estimates
City Index's analysts believe that an uptick in both the dollar and US treasury yields before Waller's speech shows it's the most important event of the week.
Obviously, a more bullish stance by the Federal Reserve official will expand's dollar gains against major rivals.
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