Dollar Hits 18-Month Highs Despite Treasury Yield Disconnect — SkimNews
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- The US dollar sits near 18-month highs, with Reuters citing Gulf unrest and US inflation as factors keeping investors on edge
- The dollar notched its fourth consecutive week of gains, while a bond market sell-off is credited with helping the currency — and FOREX.com flags a growing disconnect with Treasury yields
Why it matters: Traders typically read a stronger dollar and rising Treasury yields as part of the same risk-off trade, but the bond market sell-off is now doing the dollar's heavy lifting on its own. With the greenback at 18-month highs and the yield link breaking, FX desks, importers, and emerging-market borrowers are navigating a market where the textbook signals no longer agree.
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