Dollar Hits 17-Month High as Inflation Fears Dominate Market
The US dollar has been on a tear, reaching its third consecutive week of gains and hitting a 17-month high. This surge comes as bond markets reel from a global sell-off that's pushed borrowing costs to multi-decade peaks in response to inflationary fears fueled by higher oil prices.
However, the Dollar Index took a slight dip after the release of the latest US jobs data, decreasing 0.1% to 101.86. The dollar also lost ground against the Japanese yen, dropping almost 0.7% to 156.99 yen.
The euro, on the other hand, gained against the dollar, rising 0.05% to $1.1254. Investors were shaken by Thursday's global bond sell-off, which sent yields on benchmark US 10-year Treasuries to a 5.344%, their highest since 2002.
The latest jobs report showed that nonfarm payrolls rose just 29,000 in September, well below the expected 84,000 and an unemployment rate of 4.1%. The August jobs count was revised lower, reflecting a gain of only 133,000, while July's job growth was revised from a gain to a loss as payrolls fell by 10,000.