The US dollar stabilizes at a two-month high during today's trading.

The US dollar index settled at its highest level in two months during trading on Wednesday, as the greenback faced strong pressures on both the upward and downward paths simultaneously.

In this regard, the US dollar found clear support due to increasing optimism in the markets about the strength of the US economy, as Federal Reserve member Bostic confirmed the economy's resilience, describing it as exceeding the expectations of the US central bank. He also ruled out a recession scenario for the US economy.

These remarks supported the scenario of a smooth downturn for the US economy, and also the possibility that the US Federal Reserve may not be less aggressive regarding its interest rate cut cycle in its upcoming meetings.

Additionally, the drop in the pound strengthened the dollar at the same time; as the pound faced sharp downward pressures after official data showed a slowdown in UK inflation growth below the Bank of England's target at 1.7% in September, indicating that the Bank of England may continue to cut interest rates in its next meeting more aggressively than the markets expect.

At the same time, the dollar faced some downward pressures due to falling yields on US Treasury bonds across all maturities, which reinforced selling operations for the greenback.

During trading, the yield on 10-year US Treasury bonds fell by about 0.80% to 4.003%, while the yield on 20-year US Treasury bonds dropped to 4.352%, and the yield on 30-year US Treasury bonds decreased by about 0.86% to 4.291%.

The Dollar Now

The US dollar index – which measures the performance of the greenback against a basket of currencies including the pound and the euro – stabilized near the closing level of the previous session at 103.28 points, with a marginal increase of 0.06%.