The dollar continues to rise for the second consecutive session.

The US dollar rose slightly during trading on Tuesday, supported by a rebound in US Treasury yields alongside positive manufacturing sector data from the Richmond area as the US presidential elections approach.

In this regard, the Richmond manufacturing index data contributed to the upward momentum of the dollar index in today’s currency market, as the manufacturing index for the state contracted to 14 points in October, down from a contraction of 21 points in September, while forecasts indicated the index would contract to 19 points.

This data has sparked optimism in the markets regarding the strength of economic conditions and the manufacturing sector, which may support economic growth in the United States this year, and also reduce the pressures facing the US Federal Reserve to rush to continue the interest rate cut cycle, thus providing support for the performance of the US dollar today.

At the same time, the rise in long-term US Treasury yields continues to boost demand for the greenback, as the yield on 10-year Treasury bonds rose by about 0.53% to 4.209%, while the yield on 20-year Treasury bonds increased by 0.31% to reach 4.560%. Additionally, the yield on 30-year Treasury bonds recorded an increase of about 0.19% to 4.495%.

The Dollar Now

Looking at the currency market today, the dollar index – which measures the performance of the US currency against a basket of other currencies – rose by about 0.10% to trade at the level of 104.071 points.