Dollar Hits 17-Month High Against Euro as Bond Selloff Boosts Yields

The US dollar rose to its highest level in 17 months against the euro on October 1, as a global bond selloff pushed yields higher. The European currency fell below $1.1215 for the first time since May 2025, with the dollar index increasing by 0.51%.

Higher yields have been driven by factors such as concern over fiscal policy, weakness in French bond markets, and continued concerns about energy prices and inflation, according to Brian Daingerfield, head of G10 FX strategy at NatWest Markets.

The yield on benchmark US 10-year notes hit its highest level since 2002, reaching 5.237%. The euro also declined against the yen and Swiss franc, while barely holding in positive territory against the pound.