By Kate Duguid
NEW YORK (Reuters) - The U.S. dollar rose on Wednesday alongside Treasury yields, boosted for the second straight day by strong economic data earlier this week.
The dollar index <.DXY> was 0.18% higher to 97.400, with the 10-year Treasury note yield
"(Foreign exchange) trade was very quiet in N.Y. on Wednesday, though the (dollar index) managed a one-week high of 97.47 early in the session," wrote Ronald Simpson, managing director, global currency analysis at Action Economics. "There was no data to drive the market, though firmer Treasury yields provided some support to the USD."
U.S. industrial production rebounded in November, mainly because a strike by General Motors Co
Expectations the Federal Reserve will cut the federal funds rate from the current 150-175 basis point level are 2.2% for the central bank's January meeting, 4.3% for March and 11% for April, according to CME Group's FedWatch tool. The same tool shows a 52.9% chance that rates will remain at current levels through December 2020.
"Bottom line: the U.S. economy remains on solid footing even as the rest of the world struggles," wrote analysts at Brown Brothers Harriman.
The dollar rose 0.3% against the euro
U.S. government bonds and the dollar both shrugged off the likely impeachment of President Donald Trump. The U.S. House of Representatives is set to vote for impeachment on Wednesday on charges that Trump abused his office and obstructed a congressional probe. Although Trump would only be the third president in U.S. history to be impeached, U.S. markets brushed it off because the Senate is unlikely to convict him.
The normally sleepy Hong Kong dollar
(Reporting by Kate Duguid and Olga Cotaga; Editing by David Gregorio and Richard Chang)
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Updated Date: Dec 19, 2019 03:06:21 IST