Dollar Hits 17-Month High Amid Bond Rout, French Fiscal Worries
The US dollar continued its winning streak, reaching a 17-month high as investors fled to safer assets amid concerns over French fiscal health and a bond market rout. The euro hovered near its lowest level since May 2025, trading at $1.1237.
The global bond selloff on Thursday sent yields on benchmark US 10-year Treasuries to 5.344%, their highest since 2002. However, bargain hunters stepped in to stabilize the market, and the yield steadied at 5.247% on Friday.
Moh Siong Sim, a currency strategist at OCBC in Singapore, attributed the initial move higher in yields to rising energy prices, but noted that European fiscal risk concerns overshadowed this factor.
The dollar strength pushed sterling and the Australian dollar to their respective three-month lows before steadying. The New Zealand dollar was 0.14% firmer at $0.5614 after hitting its lowest level since November 2025.