NEW YORK, Dec. 4 (Xinhua) --The U.S. dollar index increased in late trading on Monday, largely driven by a sour market mood and rising U.S. bond yields.
The upward momentum of the U.S. Treasury yields on Monday led to material growth in yields for the 12-month to 10-year period, consequently strengthening the U.S. dollar.
The U.S. Treasury yields rose on Monday, as the 12-month through 10-year bonds all saw yields once jump near 10 basis points on Monday, boosting the American currency.
A top strategist at Goldman Sachs Group has a recommendation for traders who think markets have once again been too quick to bet on multiple Federal Reserve interest-rate cuts next year. "With roughly 135bp of easing priced by December 2024, we think markets are approaching the limits of what can plausibly be priced without attaching material odds of a recession in the near term," Praveen Korapaty said in the note.
Goldman Sachs economists anticipate the Federal Reserve to decrease interest rates just once in 2024, most likely in the fourth quarter. However, projections among prominent Wall Street banks differ significantly, with UBS Group forecasting multiple cuts.
No significant reports have surfaced during the session. Investors are waiting for Friday's release of U.S. nonfarm payrolls for November alongside the unemployment rate, while the Institute for Supply Management (ISM) services PMI is due on Tuesday and the Automatic Data Processing (ADP) employment change report on Wednesday.
In late New York trading, the euro decreased to 1.0828 dollars from 1.0872 dollars in the previous session, and the British pound fell to 1.2622 dollars from 1.2700 dollars in the previous session.
The U.S. dollar bought 147.2990 Japanese yen, higher than 146.8800 Japanese yen of the previous session. The U.S. dollar rose to 0.8730 Swiss francs from 0.8694 Swiss francs, and it rose to 1.3543 Canadian dollars from 1.3493 Canadian dollars. The U.S. dollar was up to 10.4473 Swedish kronor from 10.3762 Swedish kronor.