The greenback keeps pushing higher in the first half of the week and is now flirting with the 97.50 level.
The index is up for the third session in a row on Tuesday, fully recovering last Thursday’s 96.70 region.
The greenback gathered extra steam as of late in response to firmer bets of a 25 bps rate cut (‘insurance cut’) by the Federal Reserve at next week’s meeting.
Investors have already priced in a 25 bps interest rate cut hits month, while a larger rate cut appears to have lost consensus in the last sessions. Trade tensions, US-Iran geopolitical concerns and global growth worries continue to cloud the US outlook, however, while the absence of solid upside traction in inflation remains well in place.
At the moment, the pair is gaining 0.16% at 97.44
US 10-year yields climb to the 2.06% area.