Dollar on track for back-to-back weekly gains as yields surge and Fed hike bets rebuild

The US dollar was set on 25 September for its first back-to-back weekly gains in more than three months as markets repriced Federal Reserve policy after last week’s rate hike, robust data and energy-supply concerns, Reuters reported (Jiaxing Li).

Currencies under pressure

The euro traded near a two-month low, sterling near a three-month trough and the yen near a three-week low, raising intervention risks for Japan, according to the Reuters wrap. Dollar strength reflected higher US yields and renewed bets on further Fed tightening.

Bond market surge

Separately, the US 10-year yield was around 5.17% after a roughly 20-basis-point two-day surge that took it to about 5.22% — described as a 19-year peak. The 30-year yield near 5.46% was at its highest since 2004. Mortgage rates around 7% continued to pressure housing.

Japan and Europe policy

Japan’s 10-year yield touched 3.115%, a level last seen in 1996. Norway raised rates, and Sweden signalled a hike by year-end, adding to the global tightening tone highlighted in market coverage.

Oil backdrop

Oil remained above $100 a barrel amid possible US–Iran talks and questions about the Hormuz path, according to Reuters sources cited in market reports. Energy prices remain one of the inputs feeding inflation and rate expectations.