THE US dollar, proxied by the US dollar index (DXY), strengthened further on steady positive US data flows, which in turn helped lift its bond yields. The yield on the US 10-year note kept above 2.6% and not far from its one-month peak of 2.65%. As long as the yields stick close to recent peaks, downside risk for the dollar proved to be mild.
Steady US hiring and renewed signs of strength in the economy have some suspecting that the Fed FOMC might have to move a little sooner to boost borrowing rates.
