Dollar Hits 17-Month High as Bond Rout Drags Euro
The US dollar has reached a 17-month high as investors continue to seek safe-haven assets amid rising global bond yields and inflation concerns. The dollar index, which measures the greenback against six major rivals, stood at 102.08 on Friday.
This marks the third consecutive weekly gain for the dollar, with the last time it achieved this streak being in May 2025. The latest strength in the dollar comes after a steep global bond sell-off on Thursday, which pushed borrowing costs across the globe to multi-decade peaks.
Charu Chanana, chief investment strategist at Saxo, noted that investors are facing a combination of sticky inflation, heavy government borrowing, and large bond supply. This has led to a sharp move in bond markets, with yields on benchmark US 10-year Treasuries surging to 5.344%, their highest level since 2002.
The euro, meanwhile, is trading at $1.1237, close to its lowest level since May 2025, as concerns over France's fiscal health weigh on the single currency. The yen was steady at 158 per US dollar after data showed annual core inflation in Tokyo accelerated in September at the fastest pace in 10 months.