Dollar holds near two-month high as US Treasury yields rise

The US dollar reached a near two-month high on Thursday, buoyed by a sustained increase in US Treasury yields, according to the latest wire report. This upward trend was partly fueled by apprehensions over enduring global price pressures, exacerbated by regional tensions in the Middle East.

In the Asian trading session, the euro experienced a slight decline against the dollar, settling at $1.1330. It had shed nearly 2.5% in September, marking its steepest monthly drop since July 2025. The decline in the euro was driven by mounting concerns over Europe's debt and energy challenges.

The British pound remained steady at $1.3264, having slipped 2.1% the previous month. Similar to the euro, its stability was attributed to the strengthening dollar.

The Japanese yen slipped by 0.2%, trading at 157.82 per dollar. While the yen recorded a gain of nearly 1.5% in September, the overall trend saw a moderate decline.

Meanwhile, the Australian dollar hit a two-month low of $0.6940 on Thursday. This downturn was attributed to investors extending the odds on another potential rate hike from the Reserve Bank of Australia, following domestic inflation figures that were marginally below forecasts.

Australia's economy also saw its New Zealand dollar plummet to its lowest level since November 2025, falling to $0.5618. The NZD's decline mirrored global dollar strength.