Dollar Soars to Two-Month High Amid War-Driven Inflation Worries

The US dollar strengthened to a two-month high on Thursday, driven by rising Treasury yields that were partly linked to worries about global price pressures caused by the ongoing Middle East war.

The euro traded slightly weaker against the dollar at $1.1330 in early Asian hours, following its largest September decline since July 2025, weighed down by Europe's debt and energy concerns.

The Australian dollar touched a two-month low of $0.6940 as investors pushed back expectations for another near-term rate increase from the Reserve Bank of Australia after domestic inflation came in below forecasts.