Dollar Hits Two-Month High Amid Oil Price Surge and Rising Yields
The US dollar inched higher on Tuesday to near a two-month high as volatile oil prices and rising Treasury yields lent support. The euro traded near its weakest level in three months, while sterling was down 0.1% at $1.3242.
The dollar index, which measures the US currency against a basket of peers, rose to 101.27 and is on track to advance 1.8% this month, its best performance since June. Oil prices crept back up, with Brent crude futures above $107 a barrel after renewed efforts to end the Iran war were met with skepticism.
A deepening selloff in US Treasuries pushed yields to new peaks, with the 10-year benchmark at its highest since 2007 and the 30-year at its highest since 2004. Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia, predicted that 'the US dollar is just going to keep growing a little bit higher' due to strong US economic data.