Dollar Hits Multi-Month High Amid Elevated Yields and Weaker Yen

The US dollar has reached its strongest level since late June due to elevated Treasury yields and weakness in the yen.

Ten- and 30-year yields remain near multi-decade highs, driven by Middle East tensions and energy-driven inflation risks. Concerns over the US fiscal outlook also support the long end of the curve.

New York Fed President John Williams said there is no urgency to tighten further, which led to a decline in expectations for an October Federal Reserve interest rate hike below 40%. However, Minneapolis Fed President Neel Kashkari countered that inflation remains too high.