Dollar Hits 17-Month High as Bond Rout Weighs on Euro

The U.S. dollar was headed for a third consecutive weekly gain, near a 17-month high, as a global bond selloff pushed borrowing costs higher and investors weighed inflation risks tied to rising oil prices. The 10-year Treasury yield briefly reached its highest level since 2002 before easing, with markets awaiting U.S. jobs data for clues about the Federal Reserve’s next moves. The euro remained near a 17-month low amid concern about France’s fiscal outlook, while other major currencies also faced pressure against the dollar. Analysts said the bond rout reflected not only inflation worries but also heavy government borrowing and fiscal risks, particularly in Europe.