Dollar Surges to 17-Month High Amid Global Bond Rout and French Fiscal Worries

The US dollar has reached its highest level in 17 months as investors react to a global bond market rout and concerns over France's fiscal health.

The 10-year yield on benchmark US Treasuries surged to 5.344%, the highest since 2002, ahead of a key jobs report that could influence the Federal Reserve's near-term policy outlook.

Charu Chanana, chief investment strategist at Saxo, pointed out that long-end yields are pushing higher despite eased expectations for an immediate Fed rate hike, suggesting this is increasingly about term premium and fiscal risk, not just the next Fed decision.