
The dollar index (DXY00) Wednesday rose by +0.48% and posted a 2-1/2 week high. The dollar rose on safe-haven support from escalating Middle East tensions. Gains in the dollar accelerated after bond yields jumped on the stronger-than-expected US Sep ADP employment report, a hawkish factor for Fed policy. Also, the yen tumbled Wednesday to the dollar’s benefit after Prime Minster Ishiba ruled out a BOJ interest rate hike for now.
The US Sep ADP employment change rose +143,000, showing a stronger labor market than expectations of +125,000.