Dollar Surges as Oil Prices Soar, September Rate Hike Bets Rise

The US dollar surged to its best day in nine against major currencies as oil prices rose and Treasury yields climbed, fueled by expectations of a September Federal Reserve interest rate hike.

Crude oil prices jumped 6.5% on Thursday and are up more than 11% from the previous week's close, with WTI trading around $103 and Brent above $107.

The Australian dollar led FX majors lower as the US dollar rebounded, falling over 0.8% to mark its worst day in 56 sessions.

US yields rose across the curve due to monetary policy expectations and growth concerns, with the 30-year yield exceeding 5.3%, a level not seen since June 2007.