The U.S. Dollar Index (DXY), which measures the dollar's value against six major currencies, surged to 106.50 as the yield on the U.S. 2-year and 10-year Treasury bonds climbed to 4.12% and 4.32%, respectively.

However, weaker U.S. economic data has also led to a decline in the dollar's strength. The Consumer Confidence Index dropped by 7 points in February to 98.3, marking its third consecutive decline.

Meanwhile, Thomas Barkin, President of the Federal Reserve Bank of Richmond, predicted that the Personal Consumption Expenditures (PCE) inflation rate would decline again later this week, reflecting the Fed's success in controlling inflation.

Source: Fxstreet