Dollar Hits Three-Month High as EURUSD Breaks Below 1.13

The US dollar has reached its highest level in more than three months, driven by elevated Treasury yields despite softer inflation. According to InvestingLive's Justin Low, the greenback is mostly higher against five of the seven major currencies.

The EURUSD pair has slipped below 1.1300, with traders noting that softer inflation has not been enough to produce a sustained retreat in longer-term borrowing costs. Treasury yields are easing this morning, but remain elevated at 5.28% for the 10-year maturity.

U.S. stock futures are pointing to a higher opening as traders await jobless claims and the ISM manufacturing report. The dollar index is extending toward 102, with the yen being the weakest against the greenback.