Dollar Surges on Inflation Fears as Manufacturing Reading Reignites Rate Hike Bets

The US dollar is holding strong at a two-month high due to renewed inflation fears and rate hike bets after a robust manufacturing reading. The strong reading has pushed yields higher across the curve, giving the dollar an added boost.

The euro has fallen to a two-month low of $1.1378, while sterling has languished near a three-month nadir at $1.3231. The dollar index remains near its two-month high at 101.11.