Dollar rises as Pound slides to 6-month low

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The dollar scaled a 10-month high on Wednesday, pushing the euro and sterling to six-month lows and keeping the yen deep in intervention territory, as the prospect of higher-for-longer U.S. rates gripped markets.

U.S. Treasuries stabilised after their recent heavy selloff, though yields remained near 16-year peaks, keeping the greenback solidly bid.

The euro was last down 0.3% at $1.0534, its lowest level since March 15. The single currency is on track to lose more than 3% in the three months to end-September, its worst quarterly performance in a year.

Sterling eased 0.2% to its lowest since March 17 at $1.2134, and was headed for a quarterly loss of more than 4%.

The U.S. dollar index , which measures the greenback against a basket of other major currencies, peaked at a 10-month high of 106.49.

“It’s clear now that markets see higher long-term yields in the U.S. for a longer period. That’s the main driver for the dollar here,” said Dane Cekov, senior FX strategist at Nordea.

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