USD rises after PCE data, recoups half of buyback losses

The U.S. dollar rose by the most in nearly four weeks, recouping roughly half of its prior losses after Treasury Secretary Scott Bessent’s surprise bond-market support move. Inflation data strengthened expectations that the Federal Reserve may begin raising interest rates by year-end, reinforcing hawkish rate pricing. The combination of inflation-driven yield pressure and bond-market stabilization is likely to impact FX and broader rates-sensitive assets.