USD Hits Two-Month High as US Treasury Yields Continue Rise

The US dollar held steady near a two-month high on October 1st, supported by rising US Treasury yields. The increase in yields was partly driven by concerns over global price pressures stemming from the Middle East war.

Data showing US inflation rose less than expected in August reduced expectations for a Federal Reserve rate hike this month. However, a surge in euro zone inflation underscores the threat that higher energy prices continue to pose to the global economy.

The dollar was perched near a two-month high against a basket of currencies and last stood at 101.48. Sterling was flat at $1.3264 after having slid 2.1% last month, weighed down by a stronger greenback.