The dollar Wednesday closed to reach its peak for the year against a range of currencies while US stock futures experienced a slight decline. Trading activity remained subdued as many European and Asian markets were closed.
The dollar index, which measures the dollar’s strength against six major currencies, increased over 0.5% on Tuesday, reaching 106.49. This level was just shy of its highest point since November.
The euro was under pressure at $1.0664, heading back to its mid April five-month lows, while the pound was at $1.2488.
The latest move higher in the dollar came with after hotter-than-expected first-quarter U.S. employment cost growth on Tuesday, which sent Treasury yields higher and caused markets to further pare bets on Fed rate cuts this year.
Traders are currently only pricing in one rate cut in 2024.
The Fed is almost certain to hold its benchmark overnight interest rate…
