Dollar Surges to 17-Month High Against Euro on Bond Selloffs

The dollar rose to its highest level against the euro in 17 months on Thursday, as global bond selloffs pushed US and European government yields to new highs. The euro fell below $1.1215 for the first time since May 2025 against the dollar.

The largest quarterly rise in Treasury yields since 1994 has contributed to the dollar's strength, with higher oil prices stoking inflation concerns. Benchmark US 10-year notes hit their highest level since 2002 on Thursday, with a yield of 5.237%.

French debt surged to its highest level in 14 years, with yields on benchmark German debt also increasing. The European currency fell against the yen and the Swiss franc, and barely held its ground against the pound.