Dollar extends gains as US Treasury bonds rally

The US dollar rose against its peers on Monday, rising for the second straight day near a 5-week high, thanks to a broad rally in the US T-bonds, and growing odds of the near tightening of the US monetary policy.

The dollar index rose 0.25% to 93.49 points, after opening at 93.27 points, and hit a low at 93.20 points.

The index gained 0.2% on Friday, and resumed gains as profit-taking from a 5-week high of 93.52 points stopped.

The US dollar has gained around 0.1% last week, the third straight weekly gain, after the Federal Reserve meeting.

Fed Chairman Jerome Powell said if the US economy continues to recover, the Fed may announce the date of reducing bond-buying next November, but other members would like to see further economic progress.

The US 10-year Treasury bond yield rose today by 1.8%, and hit a 13-week high at 1.48%, due to strong chances of the near tightening of the US monetary policy.

Two members of the US Federal Reserve said on Friday that they feel the US economy is already in good enough shape for the central bank to start reducing monetary support.