Investing.com – The dollar inched up on Friday and remained near one-and-a-half-month highs ahead of the much anticipated U.S. job data due later in the day.
The gain in dollar followed a spike in Treasury yields on better-than-expected U.S. data and indications from the Federal Reserve that interest rates will continue to rise.
The U.S. dollar index, which tracks the greenback against a basket of other currencies, was at 95.50 by 01:30AM ET (05:30 GMT) after hitting an overnight high of 95.78, the most since August 20.
The yield on the benchmark United States 10-Year Treasury rose to levels not seen since 2011 after upbeat economic data and hawkish comments from Fed Chairman Jerome Powell bolstered expectations of an interest rate increase in December.
The yield was up 1.36% to 3.204% on Thursday after jumping almost 4% in the previous session.
Fed Chairman Jerome Powell said Wednesday that the U.S. central bank may raise interest rates above an estimated “neutral” setting as the U.S. economy continues to grow.