Dollar Strengthens as Inflation Concerns Persist Amid Rising Oil Prices and Bond Yields

The US dollar gained strength in European trading on Wednesday, reaching near its two-week high. The euro and pound weakened as rising oil prices and global bond yields fueled inflation concerns.

The New Zealand dollar's pair rose by 0.9% to 0.5843, putting the kiwi at its lowest since August 13 after the Reserve Bank of New Zealand raised its policy rate by 25 basis points with a less-hawkish outlook.

Bond markets remained under pressure as global yields climbed to their highest levels since 2008. The 10-year Treasury yield rose to 4.81%, while the Australian dollar's pair rose marginally to 1.4006, leaving the local unit weaker due to stronger bond yields.