Forex
Dollar Soars to Two-Week High as Oil Prices and Treasury Yields Surge
The US dollar strengthened to a two-week high on Tuesday as surging oil prices pushed Treasury yields to their highest level since 2007. The benchmark 10-year Treasury yield climbed to 5.0266% in Asian trading hours, reversing an earlier loss.
Oil prices held near a four-month peak at $107 a barrel after Yemen's Iran-aligned Houthis launched attacks on Saudi Arabia and Gulf-Iran talks were postponed.
Markets now see a Federal Reserve rate hike on Wednesday as nearly certain, with the CME's FedWatch tool pricing in a 93% chance of an interest-rate increase.