Dollar rises towards 18-month high as euro slides
US Federal Reserve minutes signalled that policymakers viewed inflation as the biggest risk to their outlook, while higher oil prices and rising euro zone bond yields weighed on the euro.
The US dollar index surged towards an 18-month peak on Thursday, climbing 0.2% to 102.40 following a 0.4% increase on Wednesday. This marked the currency's strongest level in 18 months, according to the London-based report. Minutes from the recent US Federal Reserve meeting revealed policymakers viewed inflation as the most significant risk to their outlook, potentially prompting further rate hikes.
Meanwhile, higher oil prices and escalating euro zone bond yields contributed to the euro's decline, pushing it to a 17-month low against the US dollar. French government bonds faced significant selling pressure due to concerns over France's fiscal situation ahead of the presidential election. The widening gap between German and French 10-year yields revealed heightened risk premium attached to France.
The euro slipped 0.2% to $1.1174, nearing its weakest point in 17 months. The dollar index, gauging its strength against six major currencies, also rose 0.2% to its strongest level since April 9, 2025.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Dollar rises towards 18-month high as euro slides freemalaysiatoday.com
- Canadian Dollar nears 18-month lows as risk aversion buoys the US Dollar fxstreet.com
