Dollar Inches Higher as U.S. 10-Year Treasury Yield Hits Highest Level Since 2007

Dollar Inches Higher as U.S. 10-Year Treasury Yield Hits Highest Level Since 2007 The U.S. dollar strengthened on Tuesday, moving toward a two-week high as rising oil prices and higher U.S. Treasury yields increased expectations that the Federal Reserve will continue tightening monetary policy. The benchmark 10-year U.S. Treasury yield climbed to 5.0266%, its highest level since 2007. The rise comes as markets react to renewed inflation concerns linked to surging oil prices and escalating geopolitical tensions in the Middle East. Oil was trading around $107 a barrel after renewed Houthi attacks on Saudi Arabia and delays in talks concerning the Strait of Hormuz heightened concerns about global energy supplies. Fed rate hike expectations strengthen. Markets are now pricing in roughly a 93% probability of a Federal Reserve interest-rate increase on Wednesday, according to CME's FedWatch tool, Reuters cited. Stronger-than-expected U.S. employment data and rising consumer prices have strengthened expectations for additional monetary tightening. The stronger dollar put pressure on other major currencies: 🇪🇺 Euro: around $1.1535 🇬🇧 British pound: around $1.3485 🇯🇵 Japanese yen: around 154.91 per dollar 🇺🇸 Dollar index: up about 0.15% to 99.633 Why this matters A sustained rise in U.S. Treasury yields can increase borrowing costs across the global economy and make dollar-denominated assets more attractive. For emerging markets, stronger U.S. yields and a stronger dollar can also put pressure on local currencies and increase the cost of servicing dollar-denominated debt. For Nigeria and other oil-producing economies, higher crude prices can provide stronger export revenues, but prolonged energy-price inflation can also increase domestic inflationary pressure. Source: https://www.reuters.com/world/africa/dollar-near-two-week-high-oil-surge-lifts-yields-fed-hike-bets-2026-09-15