Dollar Index Rises 0.20% as 10-Year Auction Hits Highest Yield Since 2007
Updated
Updated · Barchart · Aug 12
Dollar Index Rises 0.20% as 10-Year Auction Hits Highest Yield Since 2007
3 articles · Updated · Barchart · Aug 12
Summary
The dollar index climbed 0.20% Wednesday, reversing an early CPI-driven dip even as markets cut the odds of a September Fed hike to 40% from 51%.
A 10-year Treasury auction cleared at the highest yield since the 2007 financial crisis, lifting Treasury yields and helping the dollar recover despite July inflation cooling in line with forecasts.
July CPI eased to 3.4% year over year from 3.5%, while core CPI slowed to 2.5% from 2.6%; both monthly readings matched expectations at 0.1% and 0.2%, respectively.
Middle East tensions added safe-haven support, with no visible progress in U.S.-Iran talks over the Strait of Hormuz after a U.S. Navy helicopter fired on a cargo vessel Tuesday.
The firmer dollar pushed EUR/USD down 0.19% and limited precious-metals gains, though gold still rose 0.59% and silver gained 1.18% on the softer inflation backdrop.