Dollar Reaches Two-Month High as US Treasury Yields Climb
The US dollar continues to rise, reaching a two-month high on Thursday due to higher US Treasury yields. This increase in yields is partly driven by concerns over global price pressures stemming from the Middle East war.
Data released 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, euro zone inflation surged, highlighting the threat of higher energy prices to the global economy.
The dollar's strength has put pressure on other currencies, with the euro falling 2.5% in September and sterling losing 2.1%. The Australian dollar also fell to a two-month low, while the New Zealand dollar languished near its lowest since November 2025.