Dollar holds near two-month peak as US yields climb on euro zone inflation
· Business · Economic Times, Investing.com
The dollar steadied near a two-month peak on Thursday, supported by rising US Treasury yields as global inflation fears persisted. August US inflation rose less than expected, while euro zone inflation surged to a three-month high driven by climbing energy costs. The euro dropped 2.5% against the dollar in September, its largest monthly decline since July 2025, pressured by Europe's debt and energy worries. Sterling also slipped 2.1% last month similarly weighed down by a stronger greenback.
Why it matters
The greenback's strength erodes the purchasing power of the rupee and increases the cost of dollar-denominated imports like crude oil for Indian consumers and businesses. Higher global yields also pressure emerging market debt servicing costs.
Read the original report — Economic Times
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