Dollar Rallies After US Services Gauge Shows Resilient Economy
- The greenback leads gains among G-10 currencies after data
- Yen biggest loser among peers amid higher Treasury yields
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The US dollar is rallying Monday after a US services gauge signaled the economy remains strong, further fueling bets the Federal Reserve will continue hiking interest rates.
The Bloomberg Dollar Spot Index rose as much as 0.8%, breaking a four-day losing streak following data that showed the Institute for Supply Management’s gauge of services rose unexpectedly in November. The broad dollar rally drove all Group-of-10 currency peers lower, with the Japanese yen the worst performer driven by higher US Treasuries and a paring of newly established speculative long positions. The euro erased earlier gains with losses limited by real money buying.