EUR/USD Tumbles as Bond Yields and Rate Repricing Boost Dollar

The EUR/USD pair continues its decline, trading around 1.1580 on September 2, as the dollar gains support from rising bond yields and interest rate repricing.

The sharp increase in oil prices has pushed Brent above $95 per barrel, triggering a selloff in global government bonds, with the yield on 10-year U.S. Treasuries reaching around 4.80-4.81%.

This, combined with a shift in interest rate expectations, has kept the dollar's advantage intact, despite the eurozone's relatively resilient economic activity and higher inflation rates.