US dollar climbs as traders expect Fed to raise rates
The US dollar is on a roll right now, climbing fast as traders expect the Federal Reserve might raise interest rates to fight inflation.
The Bloomberg Dollar Spot Index just had its biggest two-day jump in nearly three months, and it's almost back to where it was in March.
All this buzz is because the Fed has been dropping some pretty strong hints about staying tough on inflation.
Currencies slide, short-term Treasury yields rise
With the dollar flexing, other major currencies like the euro and yen have taken a hit; both are at their lowest in quite a while.
Even the Canadian dollar dropped to levels not seen since last year.
Bond traders are also reacting, pushing up short-term Treasury yields since tighter US policy could be coming soon.
And with big investments in A.I. keeping the US economy strong, everyone's watching for the Fed's next move as soon as late next month (with rate hike possibly coming as soon as late next month).