Forex
Dollar Soars to 16-Month High as US Yields Reach Multi-Year Peaks
The dollar has reached its highest level in 16 months against both the euro and Swiss francs, driven by rising U.S. Treasury yields.
As interest rate differentials widen, investors are buying dollars, pushing the EUR/USD to a 16-month low of $1.1312 on September 29.
In late trading, the pair was down 0.26% at $1.1341.
The U.S. 10-year Treasury yield hit its highest level since June 2007, trading above 5%, while the 2-year yield approached a roughly two-year high near 5%.