Dollar at 17-month high as global bond rout hits euro
TLT•The dollar index stood at 102.08, set for a 1% weekly gain and its third straight weekly rise, while the euro traded at $1.1237 near its lowest level since May 2025. The sell-off pushed the 10-year US Treasury yield to 5.344%, its highest since 2002, ahead of the US payroll report.
1. Dollar gains as bonds sell off
The US dollar was headed for a third straight week of gains on Friday, reaching a 17-month high as a global bond sell-off pushed borrowing costs higher. The 10-year US Treasury yield reached 5.344% on Thursday, its highest since 2002, before easing to 5.249% in early Friday trading.
2. Payroll report in focus
The euro traded at $1.1237, near its lowest level since May 2025, with worries about France’s fiscal health weighing on the currency. Investors were focused on the US payroll report, which was likely to show slower job growth in September; the unemployment rate was forecast at 4.1% for a third straight month. Traders had reduced bets on a Federal Reserve rate hike after US consumer prices rose less than expected in August.
3. Pressure on other currencies
The yen held at 158 per US dollar, while sterling traded at $1.3187 and the Australian dollar at $0.6918, both near three-month lows. The New Zealand dollar fell to $0.5591, its lowest level since November 2025. Brent crude futures rose above $100 per barrel as traders watched stalled US-Iran talks to end the Middle East conflict.
