Dollar Surges to 17-Month High as Bond Selloff and Inflation Bite Euro

The US dollar has reached a 17-month high against the euro due to a selloff in government bonds across the US and Europe. This move has pushed Treasury yields to fresh peaks, with higher oil prices contributing to inflation. The European currency has fallen below $1.123 for the first time since May 2025 against the dollar.

The largest quarterly rise in Treasury yields since 1994 has driven up yields, with the euro declining nearly 2.5 percent in September, its largest monthly decline since July 2025.