An indicator of the US dollar rallied to its best performance in nearly two years in line with the continued increase in Treasury yields. DXY is up 0.30%, while QQQ is down 1.02%.
- The Bloomberg Dollar Spot index inched up by 0.4%, overtaking the previous year-to-date high. The last time this level was seen was in July 2020.
- The greenback appreciated against its counterparts, benefiting from the anticipation of tighter policy which drove Treasury yields higher to three-year highs.
- The dollar has also strengthened with demand amid the ongoing geopolitical tensions between Russia and Ukraine.
- Strategists believe that the United States is “still on fire,” with the country seen as pulling away from the rest of the world.