Dollar Extends Gains Against Euro Amid Rising Yields

The dollar is on track for its fourth consecutive weekly gain against the euro, fueled by rising US Treasury yields and expectations that the Federal Reserve will maintain a hawkish interest rate stance.

While job growth in September fell short of economists' predictions, and the unemployment rate rose to 4.2%, benchmark 10-year Treasury yields held near multi-decade highs.

The increase in crude prices has prompted some investors to reduce exposure to currencies of major energy importers, including the euro and the yen.

According to Dominic Bunning, head of G10 FX strategy at Nomura, 'When I look at the (jobs) data in aggregate, I think about it as actually a Goldilocks set of numbers: so activity is still pretty resilient but it's not generating significant inflationary pressure.'