Analysts suggest this could be indicative of the US economy's ability to withstand the Federal Reserve's aggressive monetary policy tightening campaign. Additionally, critical statements by central bank officials have prompted investors to reduce bets on interest rate cuts this year.
This is reported by Trading Economics.
The latest FOMC minutes also showed that some Committee members see a need for further rate hikes this year, while others expect that slowing growth will eliminate the need for further monetary policy tightening.
In an ironic twist, the currency has also benefited from demand for a safe haven amidst growing concerns about a possible US default: the credit rating agency, Fitch Ratings, has stated that current discussions about the debt ceiling have increased the risks of the government missing payments on some of its obligations.
Background. Earlier, Mind reported that the Federal Reserve was less confident about the need for further rate increases.