The dollar shrugs off a labor-data driven decrease in Treasury yields, an unusual behavior for the greenback, which tends to fall on signs of U.S. economic weakness.
The WSJ Dollar Index is up 0.3% as the greenback strengthens against most major currencies, including 0.4% against the yen and 0.2% versus the euro. That’s despite signs of weakening employment undermining Treasury yields.
“Short-term move inexplicable,” Bannockburn’s Marc Chandler says. However, the dollar is far from highs reached earlier this year. Chandler expects tomorrow’s August payrolls data to weigh on FX markets.