US Dollar rises on higher Treasury yields and rate hike expectations

The US Dollar is poised to achieve weekly gains, with its index rising by more than 1% to reach a two-month high. This strength is driven by rising US Treasury yields, which have reached their highest levels in over 20 years, and increasing market expectations that the Federal Reserve may raise interest rates again following recent monetary policy tightening.

The strengthening dollar has pressured other major currencies. The Euro fell to a two-month low of 1.1370 against the dollar, marking its third consecutive weekly decline. The British Pound also retreated near a three-month low of 1.3220, recording its worst weekly performance in four months. Meanwhile, the Japanese Yen remained near 158.8 per dollar as markets reacted to the Bank of Japan's recent policy signals.

In the energy sector, oil prices jumped by more than 3% following a missile attack by Houthi forces on Saudi Arabia. This incident has heightened concerns regarding potential energy supply disruptions and the subsequent risk of rising inflation.