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Dollar rises as US 10-year yield tops 4.9% and Brent pushes over $105
The dollar strength is tied to a US yield and oil-driven backdrop, while Houthi advances raise the risk around Bab el-Mandeb and Red Sea shipping routes.
The dollar rebounded broadly against major currencies, tracking a jump in US rates and a higher oil price, after the US 10-year Treasury yield broke above 4.9% and Brent crude rose above $105, according to Action Forex.
The move comes as yen, Aussie and euro weaken versus the dollar this week despite domestic policy expectations that were previously supportive, with the outlet pointing to a common US yield and oil factor overpowering those bilateral narratives.
Action Forex links the market pressure to renewed Middle East risk, saying Iran-aligned Houthi militants seized Yemen’s port city of Mocha and moved toward the Hanish islands, increasing focus on Bab el-Mandeb alongside the already-impaired Strait of Hormuz.
The escalation also adds to shipping-route uncertainty for Red Sea exports, with the fighting status still unresolved, Brent above $105 and WTI breaking through $100, while diplomacy between Pakistan, Saudi Arabia and Iran remains complicated.
Latest closeWTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%