What’s going on here?
The dollar soared to a two-week peak against major currencies, fueled by a sharp sell-off in US Treasuries.
What does this mean?
Long-term US Treasury yields surged by 15 basis points, surpassing 4.6%, driven by robust economic data and lackluster Treasury auctions. This turmoil led to a significant drop in global equities, pushing investors towards safe haven assets like the dollar. As a result, the dollar index hit 105.17, its highest since May 14, following a 0.5% rise the previous session. Despite debates on the dollar’s global dominance, TD Securities highlighted its continued status as a safe haven due to its high liquidity and stable democratic institutions.
Why should I care?
For markets: Market turbulence fuels dollar demand.
The sell-off in the Treasury market caused global equities to slide, leading investors to seek refuge in the dollar. The euro fell to $1.079375 and sterling dropped to $1.2696,…
