The US dollar index rose slightly during the last week’s trading, today, Friday, as the index approaches the 106-point level, supported by the rise in US bond yields, in addition to the hawkish statements of the US Federal Reserve members regarding interest rates, especially the positive economic data in the United States issued yesterday. This comes amid the markets’ anticipation of the release of the US Personal Consumption Expenditure Index data (the Federal Reserve’s preferred inflation measure), which is expected to be released today, which may have an impact on future US dollar trading.

US Dollar Performance Now

During market trading today, Friday, the US dollar index (which measures the performance of the US currency against a basket of six other foreign currencies) recorded a slight increase of 0.01%, reaching 105.924 points, supported by some factors, the most prominent of which are as follows :

First: The rise in US bond yields supports the rise of the dollar

The US dollar index rose during trading, supported by the rise in bond yields, as the US 10-year bond yields rose by 0.33% to reach 4.303 points, and the US 20-year bond yields rose by 0.39% to reach 4.554 points, and the US 30-year bond yields rose by 0.45% to reach 4.447 points, which reinforced the rise of the US dollar during market trading.

Second: The hawkish statements of the US Federal Reserve members raise the dollar

In this regard, the US dollar index witnessed a rise during recent trading this week, supported by the hawkish statements of the US Federal Reserve members regarding interest rates. In this context, Michelle Bowman, the monetary policy maker at the US Federal Reserve, said that she is ready to support raising interest rates again, if inflation does not decline. She also expected inflation to remain high for some time, indicating that the upward risks to US inflation still exist. This raised expectations that the Federal Reserve may delay the process of cutting interest rates compared to other central banks, which supports the levels of the US dollar in trading.

Third: Strong economic data in the United States supports the rise of the dollar

In a related context, the US dollar received support that contributed to its rise, due to the positive economic data in the United States issued yesterday. Data released by the US Bureau of Economic Analysis yesterday showed that the final reading of the GDP growth rate in the United States recorded a growth of 1.4% during the first quarter of this year. In the same quarter, the US GDP price index recorded a growth of about 3.1% during the first quarter. This data provided support for the dollar’s rise in the market.