The U.S. dollar gained against most of its major counterparts on Wednesday amid continued bets interest rates will remain higher for longer than previously thought, and the world's largest economy will see significant growth despite tight monetary policy.
The yields on long-term 10-year Treasury note climbed 6.8 basis points to 4.626%, rising from a low of 4.491%.
Recent comments from the likes of JP Morgan Chase (JPM) CEO Jamie Dimon and Minneapolis Federal Reserve President Neel Kashkari have contributed to expectations the Fed may raise rates higher than previously anticipated.
On the economic front, data released by the Commerce Department showed durable goods orders crept up by 0.2% in August after plunging by a revised 5.6% in July.
The uptick surprised economists, who had expected durable goods orders to fall by 0.5% compared to the 5.2% nosedive that had been reported for the previous month.
Excluding a modest decrease in orders for transportation equipment, durable goods orders rose by 0.4% in August after inching up by a downwardly revised 0.1% in July. Economists had expected ex-transportation orders to edge up by 0.1% compared to the 0.5% increase originally reported for the previous month.
The dollar index surged to 106.84 earlier this afternoon, and despite easing to 106.70, remains about 0.45% up from the previous close.
Against the Euro, the dollar is up at $1.0502, gaining nearly 0.7%. The dollar is up against Pound Sterling at $1.2135, up from $.12159.
The dollar has firmed to 149.65 yen against the Japanese currency, up from 149.07 yen a dollar. The dollar has strengthened to 0.6348 against the Aussie.
The dollar is notably higher against Swiss franc at CHF 0.9213. Against the Loonie, the dollar is down marginally, fetching C$1.3505 a unit, compared with C$1.3518 Tuesday evening.
