The US dollar recorded a strong increase during trading on Monday, due to the sharp rise in US Treasury yields, which came as a result of a weak risk appetite in the first trading of the week.

In this regard, long-term US Treasury yields witnessed a strong jump of more than 2%, which boosted the purchase of the US dollar in foreign exchange trading; the yield on the 10-year US Treasury bond jumped by about 2.62% to reach 4.543%, while the yield on the 20-year US Treasury bond increased by 2.24% to record 4.543%. Additionally, the yield on the 30-year US Treasury bond rose by about 2.25% to 4.481%.

A strong sense of risk aversion dominated today's trading as US stocks clearly fell in favor of acquiring safe commodities and currencies, including the US dollar, amid tensions in the Middle East alongside increasing uncertainty regarding the US presidential elections scheduled for November 4-5.

The US Dollar Now

In terms of today's trading, the dollar index - which measures the performance of the greenback against a basket of other major currencies - recorded an increase of about 0.47% to reach approximately 103.954 points, the highest level for the dollar index since early August.