Dollar Surges Amid Oil Price Hike, Treasury Yields Reach New Heights
The US dollar has surged to near two-week highs, driven by a significant increase in oil prices and a corresponding peak in Treasury yields.
Oil prices remain at a four-month high of $107 a barrel following new attacks on Saudi Arabia by Yemen's Iran-aligned Houthis and the postponement of Gulf-Iran talks.
The benchmark US 10-year Treasury yield reached 5.0266%, its highest level since 2007, after reversing earlier losses during Asian trading hours.
This development has reinforced expectations of a Federal Reserve rate increase on Wednesday, with the CME's FedWatch tool indicating a near certainty at 93%.