Forex – Dollar Rally on Hold in Cautious Trade; Euro Steady

0 – A rally in the dollar paused on Wednesday, as U.S. Treasury yields held below their recent seven-year highs, but demand for the greenback continued to be underpinned by expectations for a potentially faster pace of rate hikes from the Federal Reserve.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was holding steady at 95.4 by 04:13 AM ET (08:13 AM GMT), holding below a seven-week high of 95.84 reached in the previous session.

The dollar paused as the yield on 10-year Treasury notes eased after touching fresh seven-and-a-half year highs on Tuesday.

The sell-off in Treasuries has been spurred by expectations that the Fed will continue to raise rates in December and beyond as the outlook for the economy remains strong.

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