Dollar Surges to 17-Month High as Global Bond Selloff Drives Yields Higher

The dollar has surged to its highest level in 17 months against the euro due to a global bond selloff, which has pushed US and European government yields to fresh highs.

Higher oil prices have stoked inflation concerns, contributing to the decline of the euro below $1.1215 for the first time since May 2025 against the dollar.

The euro was last down 0.77% against the dollar at $1.12433, with nearly a 2.5% monthly decline in September.

According to Brian Daingerfield, head of G10 FX strategy at NatWest Markets, higher yields have been driven by factors such as concerns about fiscal policy and weakness in French bond markets, which may be spilling over into global markets.