USD Scores Large Gains Following ADP Employment Report

The U.S. Dollar (USD) rose on Wednesday to its highest level in about two and a half months to score large monthly gains against major peers.

The greenback in June registered its biggest rise since November 2016, rising by about 3%.

The Dollar Index (DXY), which measures the USD’s performance against a basket of six major international currencies, is up by 0.33% for the day at 92.356.

Today, the index has been moving in a range between 92.0010 and 92.4480, after closing Tuesday at 92.049 and opening Wednesday at 92.076.

Earlier, data showed that U.S. private payrolls rose by 692,000 jobs this month, exceeding market expectations.

Monthly gains by the USD came on the back of a surprising hawkish shift in tone by the U.S. Federal Reserve.

The U.S. benchmark 10-year Treasury bond yield decreased by 14.9 basis points in June, seeing the biggest drop since March of 2020, but added 30.6 basis points during the second quarter of the year.