Dollar Surges to 17-Month High as Global Bond Markets Plunge

The US dollar continued its upward trend, reaching a 17-month high and poised to gain for the third consecutive week. Rising inflation concerns driven by oil price increases have led to massive sell-offs in the global bond market, pushing borrowing costs to multi-decade peaks.

The yield on the US 10-year Treasury note rose to 5.344%, its highest level since 2002, before retreating to 5.249% in early Friday trading. Other segments of the global bond market also stabilized.

The euro suffered significantly, trading at 1.1245 against the US dollar and hovering near its lowest level since May 2025. Concerns about France's fiscal situation continue to weigh on the euro.