The dollar index rose toward 102 on Wednesday after hitting a one-month low in the previous session, taking cues from stabilizing Treasury yields. The dollar faced pressure in the past two weeks and tracked broad declines in Treasury yields amid fears that aggressive Federal Reserve rate hikes could tilt the US economy into recession.
Atlanta Fed President Raphael Bostic warned that headlong rate hikes could create “significant economic dislocation,” urging his colleagues to “proceed carefully” in an essay published Tuesday. Investors now await minutes of the latest central bank meeting for fresh clues on the likely path for monetary policy. Analysts also suggested that if inflation reads started showing signs of moderating, that could open up the possibility of a Fed pause.
