U.S. dollar strengthens for fifth consecutive session as Treasury yields hit one-year highs amid inflation concerns and geopolitical tensions.
The dollar index climbed 0.29% to 99.23, marking its fifth straight daily gain and the largest weekly rise in two months. The move follows shifting expectations for Federal Reserve policy, with markets pricing in potential rate hikes amid persistent inflation signals.
Benchmark 10-year Treasury yields reached 4.581%, their highest level in a year, as economic data and geopolitical risks in the Strait of Hormuz fueled price pressures. The euro fell 0.35% to $1.1627, touching a five-week low, while oil prices surged, with WTI crude up 3.07% to $104.28 and Brent rising 2.72% to $108.60.
Analysts noted the bond market’s reaction to inflation fears, driven by rising oil prices and supply disruptions. Comments from U.S. and Iranian officials further dampened hopes for a resolution to shipping attacks, adding to market volatility.