Dollar Stalls Near Two-Month Peak Amid Rising Yields and Oil Volatility
The US dollar is holding near its two-month peak as volatile oil prices and rising Treasury yields lend support. The euro, meanwhile, traded at its weakest level in three months at $1.1367 after European Central Bank chief Christine Lagarde signalled measured steps to quell inflation.
Oil prices have crept back up with Brent crude futures last near $106 a barrel as markets doubt that renewed efforts to end the Iran war will get anywhere after US President Donald Trump rejected Tehran's ceasefire proposal.
The 10-year benchmark Treasury yield has reached its highest since 2007, and the 30-year yield has reached its highest since 2004. The monetary policy-sensitive two-year yield also rose to its highest in more than two years, closing in on 5 per cent.
Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia, said that the dollar is making limited gains for now as investors await US data later in the week.