The U.S. dollar was on track for weekly gains on Friday as rising Treasury yields and growing expectations that the Federal Reserve will raise interest rates again kept the currency near its highest levels in several months.
The dollar’s strength pushed the euro to a two-month low of $1.1370 and put it on track for a third consecutive weekly decline, its longest losing streak since the end of 2025.
Sterling remained lower near a three-month low of $1.3220 and was headed for its worst weekly performance in four months.
Markets rapidly and sharply revised their interest-rate expectations after the U.S. central bank tightened its monetary policy last week, while strong economic data and renewed concerns over energy supplies further reinforced those expectations.
The dollar also benefited from a wave of bond selling that pushed yields on long-term U.S. Treasury securities to their highest levels in more than 20 years.
The dollar index, which measures the U.S. currency against a basket of other currencies, rose more than 1% this week to its highest level in two months.
Oil prices jumped more than 3% on Thursday to their highest level in a week after a Houthi missile attack on Saudi Arabia heightened concerns about supply disruptions, increasing the risk of higher inflation.
Source: Reuters
