The Dollar rallied in N.Y. on Friday, with gains coming early following comments from the Fed’s Bullard, who said we are experiencing “…more inflation than we were expecting.” He added “I think it’s natural that we’ve tilted a little bit more hawkish here to contain inflationary pressures.” Treasury yields shot up on the comments, taking the USD broadly higher. The Greenback reversed a bit lower later into the weekend, as profit taking, driven by the subsequent easing of yields set in. Given heightened inflation concerns, the USD may still have some room to run higher. There was no U.S.

The dollar settled to a consolidation of its post-Fed announcement gains. The narrow trade-weighted DXY dollar index was off highs but still up 1.5% on the week, plying a narrow range below the two-month high that was printed yesterday at 92.01. EUR-USD settled back above 1.1900s after edging out a fresh two-month low at 1.1885, and USD-JPY ebbed to a two-day low at 109.94, having dropped back from the 11-week high that was seen yesterday at 110.82. The yen has posted gains versus other currencies, finding support amid re-positioning as global asset markets sputter.

The dollar has settled to a consolidation of its post-Fed announcement gains. The narrow trade-weighted DXY dollar index is up 1.6% on the week and is currently plying a narrow range just below the two-month high that was printed yesterday at 92.01. EUR-USD has settled just above Thursday’s two-month low at 1.1891, and USD-JPY has ebbed to a two-day low at 109.97, having dropped back from the 11-week high that was seen yesterday at 110.82. The yen has posted gains versus other currencies, finding some safe-haven support as global asset markets sputter.