The US currency maintained its position near its peak recorded over a period of two months, supported by the continuous climb in US Treasury yields, in addition to renewed concerns regarding the persistence of global inflation linked to ongoing tensions
in the Middle East. In the economic context, US inflation data recorded a slight increase below expectations during August alongside a downward revision of July data, which led to a decline in bets on monetary policy tightening and a rate
hike during the current meeting. However, the clear jump in inflation levels within the Eurozone reflects the ongoing risks imposed by energy costs on global economic growth. The single European currency witnessed a slight decline to settle at 1.1330 dollars
at the start of Asian trading, after incurring a monthly drop of about 2.5 percent during September, which is the largest decline since July 2025, affected by pressures of the debt crisis and energy markets within the old continent. In
turn, the British pound settled at 1.3264 dollars following its drop by 2.1 percent in the previous month, affected by the strength of the greenback, based on Reuters reports. The US currency index in latest dealings reached 101.48 points near
its highest level in two months against a basket of major currencies, achieving monthly gains of two percent during September. Global bond markets witnessed a sharp monthly decline, the largest in years, pushing yields upward as a result of deteriorating
public finances, heavy issuances, and increased inflationary pressures. The decline in US interest rate expectations led to a slight drop in short-term bond yields, while yields on ten and thirty-year bonds recorded new record levels overnight. In Asian markets, the
yen fell by 0.2 percent recording 157.82 against the US currency despite its previous gains of about 1.5 percent last month. Kit Jukes, chief currency strategist at Societe Generale, pointed out that the yen was the best performing in the
Group of Ten during September, indicating that the market's avoidance of interventions has its direct effect. The summary of the Bank of Japan meeting released on Thursday showed that some policymakers are studying accelerating the pace of rate hikes to
achieve the central bank's targets soon. Meanwhile, the Australian dollar fell to a two-month low at 0.6940 dollars amid speculation that the Reserve Bank of Australia will not raise rates soon after inflation came in below expectations, while the New
Zealand dollar retreated near its lowest level since November 2025 to settle at 0.5636 dollars.
