US Dollar Surges to 17-Month High Amid Global Bond Rout
The US dollar has reached a 17-month high as global bond yields continue to rise, driven by investor anxiety over inflation and government borrowing. Yields on 10-year US Treasuries have soared to their highest point since 2002, with the current rate at 5.249%.
The euro is under pressure due to concerns about France's fiscal health and escalating political uncertainties in Europe. The single currency has hit its lowest level since May 2025, trading at $1.1237 against the US dollar.
Charu Chanana, chief investment strategist at Saxo, noted that investors are facing an uncomfortable mix of sticky inflation, heavy government borrowing, and large bond supply.
The Federal Reserve's focus on inflation and price pressures has sharpened the focus on upcoming economic data, including a US payroll report due later in the day. A hot wages print could influence US rates and Treasury yields.