Dollar nears two-month high as recovery risks remain

The dollar stood near a two-month high against a basket of currencies on Monday as doubts about economic recovery remained ahead of the release of economic data and political developments in the United States.

The dollar index was little changed at 94.530. It hit a two-month high of 94.745 last week and reported its biggest weekly rise since April.

The euro stood at $1.1635. The British pound sat at $1.2767, slightly above Wednesday’s two-month low of $1.2676.

The U.S. inflation-linked bond yields rose nearly 20 basis points following a record low hit earlier in the month.

Data on U.S. currency futures positions also suggested more potential for the dollar to recover.

Markets are awaiting the first U.S. Presidential debate on Tuesday as the election in early November draws near. 

However, few investors are expecting the U.S. Congress to pass another stimulus policy to support the economy ahead of the election.

Against the yen, the dollar traded at 105.46. The Turkish lira fell 1.6% to a record low of 7.8000 on the dollar.