United States Dollar Index edges up to near 99.50, supported by higher bond yields

The US Dollar (USD) shows a slight increase against its counterparts on Tuesday, as long-term United States Treasury Yields surge due to a rise in oil prices caused by renewed Middle East conflicts. Early in Europe, the US Dollar Index (DXY) climbs 0.1% to around 99.50. The 10-year US Treasury Yields reach a 19-month high at 4.78%, while 30-year yields rise by 0.5% to near 5.27%, the highest level in over a week.

Higher oil prices have supported US bond yields, as inflation projections become less anchored. Oil prices have risen nearly 0.6% to close near $86.00, and geopolitical tensions between the US and Iran have raised concerns about potential energy supply disruptions. The US Dollar Index stands at 99.48, showing a slightly bearish short-term trend below the 20-day exponential moving average (EMA) at 99.53.

The lack of a bounce off this nearby EMA suggests limited upside potential at present, while the Relative Strength Index (RSI) at 46.62 remains below the neutral 50 line, indicating muted bullish momentum, not outright oversold conditions. Immediate resistance lies at the 20-day EMA at 99.53, the first hurdle bulls must overcome to ease recent downside pressure and pave the way for a more substantial recovery.