The US dollar jumps to its highest level in 10 months versus rival currencies

• The US dollar surged to its strongest point in 10 months against a basket of rival currencies Tuesday.
• The euro hit its weakest since December 2022 following almost a 1% drop Monday amid hawkish Fed comments.
• The pound dropped to its lowest level since March, down 0.26%.

On Tuesday, the US dollar surged to its highest level in 10 months against a basket of rival currencies, while the euro, pound, and yen all fell to multi-month lows.

The US Dollar Index, which tracks the buck against six other currencies, has climbed 2.76% over the last four weeks. On Tuesday it was up to 107.16, a level it hasn't seen since last November.

The greenback's strength comes as Federal Reserve officials maintain a hawkish outlook on interest rates and the 10-year US Treasury yield hovers at a 16-year high, at 4.752%.

Indeed, broad economic resilience has led investors to believe the central bank will keep monetary policy restrictive for longer, putting upward pressure on the greenback.

The euro held at around $1.0476 on Tuesday, its weakest since December, and it has fueled predictions it will soon hit parity, or a one-to-one equivalent with the dollar.

The common currency's slide was driven by algorithmic sales and weakening risk appetite amid rising US bond yields, Bloomberg reported.

Meanwhile, the pound dropped to its lowest since March, to 1.20565 versus the dollar, and the yen moved just under the key threshold of 150 per dollar. The Australian dollar was down to an 11-month low of $0.6302, and Russia's ruble weakened to 100-per-dollar.