Last week saw the US Dollar dominating the currency markets, with a surprising rally buoyed by market sentiments flipping in favor of an imminent Fed rate hike in June. An atmosphere of growing optimism pervaded the scene, buoyed by increasing confidence in a forthcoming agreement on raising the US debt ceiling, thus staving off a looming government default. The greenback's impressive stride was synchronized with an appreciable leap in treasury yields. An intriguing development was the apparent decoupling of Dollar's inverse performance from risk markets, as exemplified by NASDAQ's robust gains. It is now speculated that Dollar might maintain this trajectory of reduced sensitivity to risk sentiment in the near future. Within the foreign exchange market, the New Zealand dollar trailed at the back of the pack. 'Kiwi' took a hit following what was perceived as a dovish rate hike by RBNZ. Australian Dollar, hampered perhaps by market pessimism over a waning Chinese recovery, was the second-worst performer. Yen also languished, buckling under the pressure of escalating global benchmark yields. European majors, despite losing ground to the dollar, held their own against other currencies. Notably, the Swiss Franc and Euro managed to outpace the Sterling, if only just. These developments serve as a reminder of the capricious nature of the currency markets, where fortunes can shift rapidly based on global economic dynamics. | 