U.S. Dollar Inches Up To Highest Levels In Ten Months

(RTTNews) - The value of the U.S. dollar has moved modestly higher during trading on Tuesday, extending the upward trend seen in recent sessions.

Currently, the U.S. dollar index is up 0.18 points or 0.2 percent at 106.18, rising to its best levels in ten months.

The greenback is trading at 149.04 yen compared to the 148.88 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0574 compared to yesterday's $1.0593.

The dollar is benefitting from its appeal as a safe haven amid ongoing concerns about the outlook for U.S. interest rates, with JPMorgan Chase (JPM) CEO Jamie Dimon warning in an interview with The Times of India that rates could go as high as 7 percent.

"I am not sure if the world is prepared for 7%," Dimon said. "I ask people in business, 'Are you prepared for something like 7%?' The worst case is 7% with stagflation."

"If they are going to have lower volumes and higher rates, there will be stress in the system," he added. "We urge our clients to be prepared for that kind of stress."

Minneapolis Federal Reserve President Neel Kashkari also wrote in an essay posted on Tuesday that there is a 40 percent chance the Federal Reserve will have to push rates "meaningfully higher" to combat stubborn services inflation.

Last week, the Fed left interest rates unchanged as widely expected but forecast another rate hike before the end of the year as well as keeping rates at elevated levels for longer than previously anticipated.