The US dollar hits its highest level in a year
The US dollar rose to a one-year high on Tuesday on expectations that the US Federal Reserve will announce an easing of its massive bond-buying program next month, while concern about sharp increases in energy prices led investors to seek safety in the greenback.
US two-year Treasury yields jumped to their highest level in more than 18 months as investors sold US debt on expectation that rising energy prices would fuel inflation and increase pressure on the US Federal Reserve to take action sooner than expected.
Investors are awaiting US consumer price index data due on Wednesday and retail sales figures on Friday for more clues regarding when the US central bank may begin to scale back its stimulus measures.
The dollar index, which measures the value of the US currency against a basket of six competing currencies, jumped to 94.557, its highest level since September 25, 2020.
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