Dollar index shoots above 99 mark on war led inflation concerns

The dollar index shot above 99 mark to a three-month high amid concerns of surging inflation in US. Higher energy prices due to escalating tensions in the Middle East have added to inflation concerns, prompting markets to scale back bets on near-term policy easing. The yield on the US 10-year Treasury note holds around 4.06% at the time of writing after rising for two consecutive sessions amid elevated inflation fears. The US Dollar also receives support from safe-haven demand due to the ongoing Middle East war. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends gains for the third consecutive day, trading around 99.20 during the Asian hours on Wednesday. Among basket currencies, EUR/USD and GBP/USD edged lower as dollar firmed.

 

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