Dollar Soars as Global Bond Market Rout Continues
The US dollar is poised to claim its third consecutive weekly gain, as a global bond market rout continues to send borrowing costs to multi-decade highs. The yield on benchmark U.S. 10-year Treasuries reached 5.344% on Thursday, their highest level since 2002, amidst inflationary fears driven by higher oil prices.
The dollar index, which measures the US currency against six major rivals, stood at 102.08 and was on track for a 1% weekly gain, its third straight weekly advance. The euro traded at $1.1237, near its lowest level since May 2025, weighed down by concerns over France's fiscal health.
The yen held steady at 158 per dollar after data showed Tokyo's annual core inflation accelerated in September at the fastest pace in 10 months. Charu Chanana, chief investment strategist at Saxo, said investors are confronting an uncomfortable mix of stubborn inflation, heavy government borrowing and large bond supply.