Dollar Soars to 16-Month Highs as Treasury Yields Surge Above 5%

The US dollar strengthened to 16-month highs against several major currencies as investors waited for economic data that could give clues about the Federal Reserve's interest rate-hiking cycle.

Treasury yields hovered near multi-year highs, above 5%, after touching their highest since June 2007. The benchmark 10-year yield settled at this level amid rising concerns about inflation and a potential global energy shock.

The Australian dollar weakened after the Reserve Bank of Australia raised interest rates as expected to combat high inflation, which is now at a 15-year high of 4.60%. The Aussie fell to its lowest in nearly two months against the greenback.