Dollar Surges Near Two-Month High Amid Rising Yields and Volatile Oil

The US dollar has risen to near a two-month high due to rising Treasury yields and volatile oil prices. The euro is trading at its weakest level in three months, while sterling has also fallen to a three-month low.

Oil prices have increased, with Brent crude futures above $107 per barrel, as markets doubt the success of renewed efforts to end the Iran war. The US Treasuries have seen a deepening selloff, pushing yields to new peaks, with the 10-year benchmark at its highest since 2007 and the 30-year at its highest since 2004.

The monetary policy-sensitive two-year yield has risen to its highest in over two years, closing in on 5%. Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia, expects the US dollar to continue growing higher due to stronger US economic data and interest rates compared to elsewhere.