The dollar index traded higher by 0.26 per cent against a basket of six currencies in late afternoon trade. In the global market, the dollar rose against the euro and the yen on Wednesday, driven by higher US Treasury yields which rose on expectations that the Federal Reserve will increase interest rates in December.
The US government bond yields rose to their highest levels in nearly seven weeks on Tuesday as investors have been lightening up on their bond holdings following the Fed’s signal a week ago that a rate increase before the end of this year remains on the table. Meanwhile, the benchmark BSE Sensex fell by 37.67 points, or 0.14 per cent, to settle at 26,552.92.
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