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The dollar hit the highest since March as Treasury yields rose and stocks fell, with traders betting interest rates will remain elevated even if the Federal Reserve decides to go on hold. A rally in oil added to concern about a flare-up in inflation.
As the greenback advanced, options traders positioned for further gains — with one-year risk reversals around their most-bullish levels since April. Some analysts also cited weaker growth in China and Europe as one of the reasons for the dollar strength. Ten-year US yields climbed seven basis points to 4.25% as investment-grade bond sales surged. The S&P 500 hovered near 4,500. Brent topped $90 a barrel as key OPEC+ producers extended supply cuts.
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Dollar Hits Highest Since March as US Yields Climb: Markets Wrap
