The US Dollar showed strength on Tuesday, September 15, as investors braced for the Federal Reserve's upcoming policy decision. According to FX Street (MUFG), expectations of further Fed tightening and sharply rising US Treasury yields have driven the US Dollar Index (DXY) back to levels last seen before the August Treasury buyback announcement.
FX Street reported that the US Dollar Index maintained a positive trend for the fourth consecutive day, approaching a nearly two-week high. Meanwhile, silver prices edged slightly lower near $63.14 during the European session, pressured ahead of the Fed’s policy announcement scheduled for Wednesday. Higher oil prices have also contributed to inflation concerns, prompting a dip in gold as markets price in potential rate hikes.
This strengthening of the US Dollar is significant for Japanese investors, as fluctuations in the DXY impact currency pairs like USD/JPY and influence cross-asset positioning in FX, equities, and commodities markets across Asia.