The dollar’s weakness in the face of three interest rate increases last year and bond yields hitting near decade highs is baffling and may be due to both short-term uncertainty and long-term pessimism, according to analysts at BNY Mellon. Last year was supposed to be the year of the U.S. dollar, with the Federal Reserve delivering three planned rate hikes and the 2-year Treasury note yield TMUBMUSD02Y, +1.68% rising to 1.9%, its highest level since September 2008. The ICE Dollar index DXY, -0.28% a measure of the dollar against six major rivals, settled at 91.85 on the last trading day of 2017, down 10% for the ... (full story)