US Dollar Extends Rebound

2026-09-01 15:39 By Andre Joaquim 1 min. read

The dollar index rose to above 99.6, extending the rebound from the three-month low of 98.8 from August 21st, and tracking the surge in yields across the curve inflationary risks aligned with the outlook of a more hawkish Federal Reserve.

The US and Iran reignited attacks against each other and further dimmed the small prospects that energy flows through the Strait of Hormuz could improve in the near term.

The rise in energy prices added to inflationary pressures shortly after a series of FOMC members, including Chairman Warsh, warned that inflation could warrant a rise in interest rates.

The Chairman also noted that the labor market has been under full employment recently, aligned with annual revisions to nonfarm payrolls that were well below recent downgrades.

In the meantime, evidence of higher inflation in the Eurozone added to the consensus of an ECB rate hike, limiting the rebound for the DXY.



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