The dollar index rose above the 104-point level on Monday, reaching a new 20-year high, as expectations for further monetary tightening by the Federal Reserve to fight inflation may continue to rise.

One market measure of U.S. interest rate expectations, the yield on the 10-year Treasury note, rose to 3.15 percent today, while market expectations based on the federal funds rate futures seem to point to the possibility of a peak in the hike cycle at 3.5-3.75 percent. Thus, the market may be close to fully discounting monetary policy tightening in this cycle, and this in turn may mean that space for any further strengthening of the USD may be shrinking. On the other hand, in addition to rising interest rates, global uncertainty still remains and the USD may be acting as a safe haven.

https://www.fxmag.com/forex/us-dollar-usd-starts-to-skyrocket-beati...