Dollar at 17-month high as global bond rout hits euro
UUP•The dollar index stood at 102.08, set for a 1% weekly gain and its third consecutive week of gains, as global bond selling pushed the 10-year U.S. Treasury yield to 5.344%, its highest since 2002. The euro traded at $1.1237, near its lowest level since May 2025.
1. Dollar gains as yields rise
The dollar 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 U.S. Treasury yield hit 5.344% on Thursday, its highest since 2002, and was last at 5.249% in early Friday trading.
2. Euro under pressure
The euro was at $1.1237, near its lowest level since May 2025, amid concerns about France’s fiscal health. French debt yields reached a 14-year high, while the dollar index was at 102.08 and set for a 1% weekly gain.
3. Payroll report in focus
Investors were watching the U.S. payroll report due later Friday for clues on the near-term policy outlook. Job growth was expected to slow in September, while the unemployment rate was forecast at 4.1% for a third consecutive month. Traders had reduced bets on a Federal Reserve rate hike after U.S. consumer prices rose less than expected in August.
