US dollar index slowly approaches 104 mark amid soaring treasury yields

The US dollar index is staying elevated and moving towards the next psychological mark of 104, supported by strong US treasury yields. US benchmark 10 year treasury yields are soaring at 4.2% amid expectations that Fed will slower its rate cut pace. Besides, safe haven flows into the greenback amid escalating tensions in the Middle East is also keeping the global currency supported. Besides, Minneapolis Fed President Neel Kashkari said the long term trajectory for interest rates could be higher than it has in the past. Dallas Fed President Lorie Logan also said she supports rate cuts but called for a patient approach. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 103.74 after hitting a high of 103.85 in the previous session. Investors now look ahead other Fed speakers for further cues on rate cut moves and also to Feds Beige book and flash PMIs this week which will provide an updated view of private sector performance in October. Among basket currencies, EURUSD and GBPUSD are quoting at $1.08and $1.30 respectively.

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