Dollar gains in NY as markets price in three Fed hikes, 2-year yields rise

The US dollar strengthened further in New York trading, with markets pricing in three interest rate hikes, as two-year Treasury yields rose. The move reflects growing expectations for Federal Reserve policy tightening, driven by economic data and inflation concerns that have boosted demand for the dollar. The yield increase on short-term government debt signals investor confidence in the Fed's commitment to combat inflation, supporting the currency's upward momentum.