Dollar Soars to 16-Month High Amid Hawkish Fed Bets

The US dollar has reached its highest level in 16 months against the euro and Swiss franc as investors position themselves for upcoming economic data that may provide clues about the Federal Reserve's interest rate-hiking cycle.

Treasury yields have hovered near multi-year highs, with the benchmark 10-year yield settling above 5%, a level not seen since June 2007.

The euro fell to its lowest point against the dollar in May 2025, currently trading at $1.1312 as it struggles with a global energy shock and growing political risk in Europe.

Eugene Epstein of Moneycorp noted that investors are waiting for jobs and inflation data to determine whether the current Fed board is justified in their hawkish stance.