The U.S. dollar has risen to a 10-month high as bond yields continue to spike.
Bond yields in the U.S. are now at their highest level since October 2007. The latest rise came after a Federal Reserve official said that interest rates should probably rise again and be held higher for longer until inflation falls back to the central bank’s 2% annualized target.
The 10-year U.S. Treasury, which sets the tone for borrowing costs around the world, is now at 4.566%.
Higher yields have made the U.S. dollar more attractive, pushing the dollar index to 106.2, its highest level since November 2022. The index tracks the dollar against six other currencies.
Elsewhere in currency markets, the Euro rose 0.1% against the dollar to $1.0596, having hit its lowest level since March of this year earlier in the trading session.
The British pound is at its lowest level since mid-March of this year at $1.2168 and was last down 0.19% at $1.219.
The pound sterling has been trending lower since the Bank of England decided last week to hold interest rates at 5.25% following data showing the British economy is slowing down.
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