Dollar Strength Endures Amid Rising US Yields and Global Price Pressures

The US dollar held steady near its two-month high on October 1st, buoyed by an increase in US Treasury yields. This rise is partly due to concerns over persistent global price pressures stemming from the Middle East war.

Against the dollar, the euro experienced a marginal loss, trading at $1.1330 in the early Asian session. It had its largest decline since July 2025 in September, dropping by nearly 2.5% due to Europe's debt and energy worries.

The Australian dollar fell to a two-month low of $0.6940 as investors extended their odds on another near-term rate hike from the Reserve Bank of Australia following lower-than-forecast domestic inflation figures.