BofA Says Dollar Swings to Rise as Data Returns After Shutdown

Volatility is set to return to foreign-exchange markets as US economic data resumes following the end of the record government shutdown, according to Bank of America Corp.

The dollar is more sensitive to global interest rates than at any point since the first quarter, Adarsh Sinha and Janice Xue wrote in a Thursday note, citing the ICE US Dollar Index’s relationship to two-year interest-rate spreads.