Dollar Holds Firm Near Two-Month High Amid Rising Yields

The US dollar maintained its position near a two-month high on Thursday, bolstered by rising US Treasury yields. The increase in yields was partly driven by concerns over global price pressures stemming from the Middle East conflict.

Data showed that US inflation rose less than expected in August, with downward revisions to July's reading reducing expectations for a Federal Reserve rate hike this month. However, a surge in euro zone inflation underscored the threat posed by higher energy prices to the global economy.

The dollar held firm against other major currencies, with the euro down 0.5% at $1.1330 in early Asian trading, and sterling flat at $1.3264 after sliding 2.1% last month.