Rising yields push dollar higher ahead of Powell comments

The US dollar looks set to end the week stronger against most major currencies amid the prospect of policy rates in developed markets (DM) remaining “higher for longer”. While this week’s rise in DM bond yields was broad-based, short-term yields in the US and other DM economies outside of Europe rose the most, with the former coming on the back of hawkish comments from Fed speakers. This underpinned gains in these economies’ respective currencies.