The USD Index rose to 102.08 on Friday, a 1% lift that etched a 17‑month high and kicked off the third straight week of gains.
Bond markets reacted sharply after a global sell‑off, sending the benchmark US 10‑year yield to 5.344%, the highest since 2002, before easing to 5.249% in early trade. This spike pushed borrowing costs worldwide to multi‑decade peaks, amplifying inflation worries amid rising oil prices.
Euro traders saw the single currency slide to $1.1237, near its lowest since May 2025, as France’s fiscal health doubts intensified. French 14‑year bond yields climbed to a new high, reflecting mounting concerns about the country’s shaky finances.
Fed officials have tightened their focus on inflation, with two policymakers calling for more data before a rate hike. The next U.S. payroll report, slated for Friday, is under scrutiny; analysts expect September job growth to slow, while the unemployment rate might hold at 4.1%.
Yen and other currencies stay near lows, while Brent futures slipped below $100 as Middle‑East talks stall. Traders view the dollar‑yen co‑strengthening as a flight‑to‑safety move driven by European uncertainty. The dollar’s trajectory now hinges on the upcoming wage data and any Fed policy shifts.