Dollar Soars as Yields and Oil Prices Surge
The US dollar has continued to rise, hovering near a two-month high as Treasury yields surge and oil prices climb. The euro has dropped to its weakest level in three months at $1.1360 after European Central Bank chief signals measured steps to combat inflation.
Brent crude futures have risen above $107 per barrel amid doubts over the success of renewed efforts to end the Iran war, following US President Donald Trump's rejection of Tehran's ceasefire proposal.
The monetary policy-sensitive two-year yield has reached its highest level in more than two years, closing in on 5%, as deepening selloff in US Treasuries pushes yields to new peaks. The 10-year benchmark is at its highest since 2007 and the 30-year at its highest since 2004.
Australia's central bank has raised its cash rate to a 15-year high of 4.60%, citing inflation as too high, while markets anticipate US data this week will show stronger economic growth, supporting further Federal Reserve rate hikes.