Dollar Consolidates Gains as US Yield Curve Continues to Flatten

Dollar Consolidates Gains as US Yield Curve Continues to Flatten
An employee of the Korea Exchange Bank counts one hundred U.S. dollar notes during a photo opportunity at the bank's headquarters in Seoul, South Korea, on April 28, 2010. Jo Yong-Hak/Reuters
Reuters
Updated:

LONDON—The U.S. dollar consolidated gains on Monday after hitting a 1–1/2 year high on Friday as the Treasury yield curve extended a three-week flattening streak following hawkish comments by a Federal Reserve official.

With the Fed clearly signaling its intent to raise interest rates as early as March after its meeting last week, money markets and major Wall Street banks are now expecting as many as five rate hikes this year.