Dollar gets lift from higher yields
TLT•The dollar held near a two-month high as rising U.S. Treasury yields supported it, despite investors scaling back expectations for a Fed rate hike this month. The dollar index stood at 101.48 after gaining 2% in September.
1. Yields support dollar
The dollar held near a two-month high on Thursday as U.S. Treasury yields extended their rise. August U.S. inflation came in below expectations, reducing bets on a Fed rate hike this month, while 10- and 30-year Treasury yields hit new highs overnight.
2. Currencies diverge
The euro slipped to $1.1330 and lost nearly 2.5% in September, pressured by Europe's debt and energy worries. Sterling was flat at $1.3264 after falling 2.1% last month. The yen declined 0.2% to 157.82 per dollar, but gained nearly 1.5% in September as the threat of intervention supported it.
3. Other currencies weaken
The Australian dollar fell to a two-month low of $0.6940 after domestic inflation came in slightly below forecasts, while the New Zealand dollar stood at $0.5636, near its lowest level since November 2025.
