The U.S. Dollar Index (DXY) has climbed above the 100 level for the first time since November, rising more than 0.3% and marking its fourth consecutive day of gains. Market analysts cited by RTHK suggest that the index may continue its upward trajectory, potentially securing a second consecutive week of advances.
At the same time, the yield on the U.S. 10-year Treasury note has increased to approximately 4.28%, reflecting heightened demand for dollar-denominated assets amid growing global uncertainty.
The dollar has also strengthened significantly against the Japanese yen, approaching the 160 yen threshold, with the latest trading levels reported around 159.38 yen per dollar.
This surge in the dollar is largely attributed to rising geopolitical tensions in the Middle East, which have triggered a shift in investor sentiment. Capital is increasingly flowing away from risk-sensitive assets such as equities and into traditional safe-haven instruments, including the U.S. dollar and U.S. Treasuries.
Furthermore, markets are becoming increasingly concerned that a sharp increase in global energy prices could reignite inflationary pressures. If inflation accelerates, major central banks may be forced to tighten monetary policy further or maintain elevated interest rates for longer than previously expected.
As a result, the strengthening dollar reflects both heightened global risk aversion and expectations of persistent monetary tightening in the months ahead.