Dollar Firms Near Two-Month Peak Amid Rising Oil Prices and Treasury Yields
The US dollar strengthened on Tuesday, nearing its two-month high as oil prices and Treasury yields rose. The euro fell to its weakest in three months at $1.1360 after the European Central Bank's chief signaled measured steps to combat inflation.
Oil prices increased with Brent crude futures trading above $107 a barrel due to doubts over the success of renewed efforts to end the Iran war, following US President Donald Trump's rejection of Tehran's ceasefire proposal.
The deepening selloff in US Treasuries pushed yields to new peaks, with the 10-year benchmark at its highest since 2007 and the 30-year at its highest since 2004. The monetary policy-sensitive two-year yield rose to its highest in over two years, closing in on 5%.
Australia's central bank raised its cash rate to a 15-year high of 4.60% on Tuesday in a unanimous decision, citing inflation as too high and stating it was prepared to hike further if needed. The Australian dollar briefly spiked to a high of $0.7029 on the decision before paring some gains.