Supported by hawkish statements from the Federal Reserve and high US yields, the US dollar index is basically flat, and is expected to record a 1% weekly increase this week. The US dollar spot index fell slightly by 0.1%, after closing higher for five consecutive trading days. The 10-year US Treasury yield fell 1 basis point to 5.19%. Shen Mingsong, foreign exchange strategist at OCBC Bank, said, “Higher yields, high energy prices, and continued concerns about inflation support the market's demand for the US dollar.” He added: “Next week's non-farm payrolls report may determine whether the dollar can continue this round of gains.”

Supported by hawkish statements from the Federal Reserve and high US yields, the US dollar index is basically flat, and is expected to record a 1% weekly increase this week. The US dollar spot index fell slightly by 0.1%, after closing higher for five consecutive trading days. The 10-year US Treasury yield fell 1 basis point to 5.19%. Shen Mingsong, foreign exchange strategist at OCBC Bank, said, “Higher yields, high energy prices, and continued concerns about inflation support the market's demand for the US dollar.” He added: “Next week's non-farm payrolls report may determine whether the dollar can continue this round of gains.”