Dollar index steadies in close proximity to next psychological 108 mark on Monday morning in Asia supported by higher US benchmark treasury yields above the 4.6% mark, sustaining its highest level since early May, amid expectations of more limited Federal Reserve rate cuts in 2025. The dollar index that measures the greenback against a basket of currencies is quoting currently at 107.78, marginally lower on the day but on track for a near 7% annual gain, hovering around a two-year high. For the month, the dollar has gained nearly 2% as Fed Chair Jerome Powell signals caution on further easing and underpinned by expectations that President-elect Donald Trump's policies, tariff hikes will be pro-growth and inflationary and keep Treasury yields elevated. Among basket currencies, EURUSD and GBPUSD are staying flat at $1.0465 and $1.2580 respectively amid thin volumes and lack of cues during year end period.
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