Dollar Strength Fuels Euro Sell-Off as Fed Hike Expectations Soar

The US dollar is poised to post its first consecutive weekly gains in over three months, thanks to rising Treasury yields and growing expectations of further Federal Reserve rate hikes.

This has pushed the greenback near multi-month highs, causing the euro to dip to a two-month low of $1.1370 and putting it on track for its third weekly decline since 2025.

The dollar's strength has also had an impact on sterling, which is languishing near a three-month low of $1.3220 and on course for its worst weekly performance in four months.