US Dollar Registers Weekly Gains Amid Rising Bond Yields and Rate Hike Expectations

The U.S. dollar recorded weekly gains on Friday, driven by rising Treasury yields and increased expectations that the Federal Reserve (U.S. central bank) will hike interest rates again. This situation kept the American currency near its multi-month highs. The Euro declined to its lowest level in two months (1.1370 dollars) due to the dollar's strength, heading for a third weekly drop, its worst losing streak since late 2025. Similarly, the British Pound remained down near its three-month low (1.3220 dollars), preparing to record its worst weekly performance in four months. Markets swiftly and strongly adjusted their interest rate expectations after the U.S. central bank tightened its monetary policy last week. Strong economic data and renewed concerns over energy supplies further reinforced this conviction.