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Dollar holds 17-month high

Dollar holds 17-month high

The dollar price rose to its highest level in 17 months, benefiting from a wave of selling in the global bond market and rising borrowing costs, amid increasing inflation fears due to rising oil prices. U.S. 10-year Treasury yields hit their highest level since 2002 at 5.344% before sliding slightly to 5.249%. The market is awaiting the U.S. employment report to determine the course of monetary policy, while the euro weakened and French bond yields reached an unprecedented high in 14 years, whereas the yen remained stable after inflation rose in Tokyo.

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