Dollar hits 17-month high versus euro as bond selloff lifts yields
TLT•The dollar reached a 17-month high against the euro as government bond selling in the United States and Europe pushed yields higher. The euro fell below $1.123, while the dollar recorded its sixth consecutive quarterly gain against a currency basket.
1. Dollar strengthens
The dollar rose to a 17-month high against the euro on Thursday as a government bond selloff in the United States and Europe pushed Treasury yields to fresh peaks. The euro fell below $1.123 for the first time since May 2025 and was last down 0.79% at $1.1238.
2. Yields and inflation
The benchmark 10-year U.S. Treasury yield reached its highest level since 2002 and was last down 2.28 basis points at 5.272%. Higher oil prices and inflation concerns were among the factors cited by NatWest Markets strategist Brian Daingerfield for rising yields; he said further Federal Reserve tightening was likely.
3. Other currencies retreat
The dollar posted its sixth straight quarterly gain against a basket of currencies, its longest such streak since 2022. The Australian dollar fell to a two-month low of $0.69040 after domestic inflation came in below forecasts.
