Dollar hits 16-month high versus euro and Swiss franc as Treasury yields top 5%

The dollar hit 16-month highs against the euro and Swiss franc on Tuesday as Treasury yields topped 5%, with investors awaiting US economic data for clues on Federal Reserve rate hikes. The euro fell to $1.1312, its lowest since May 2025, pressured by an energy shock and European political risk. The Australian dollar weakened after its central bank raised rates to 4.60%. Traders cut odds of a Fed rate hike next meeting to 52% from 70% following Fed commentary. Brent crude settled at $102.59 a barrel after Saudi Arabia resumed Red Sea oil loadings.