Dollar Surges on Soaring Yields and Fed Rate Hike Bets

The US dollar is on track for its first back-to-back weekly gains in over three months due to surging Treasury yields and growing expectations of further Federal Reserve rate hikes.

As a result, the greenback has climbed to multi-month peaks and pushed the euro to a two-month low of $1.1370, with sterling languishing near a three-month low of $1.3220.

Markets have aggressively repriced the interest rate trajectory following the Fed's policy tightening last week, while robust economic data and fresh energy supply concerns have further strengthened that conviction.

A bond selloff has sent long-dated US Treasury yields to their highest in over 20 years, giving the dollar a boost.