Dollar Rises Globally, Pressuring Euro, Pound, and Yen

The US dollar is experiencing strong gains globally, putting pressure on major currencies such as the euro, pound, and yen. This increase in dollar strength has pushed the euro to a two-month low of $1.1370, marking its third consecutive weekly decline and worst losing streak since late 2025.

The British pound remains near a three-month low of $1.3220, heading for its worst weekly performance in four months. The dollar's strength is attributed to rising Treasury yields and growing expectations that the Federal Reserve will raise interest rates again.

The currency market has rapidly adjusted its interest rate expectations following the US Federal Reserve's tightening of monetary policy, coinciding with strong economic data and renewed concerns regarding energy supplies. Long-term US Treasury yields have risen to their highest levels in over two decades, supporting the dollar.