Dollar steady near two-month peak as yields rise, Fed data looms

The dollar held near a two-month peak on Tuesday, supported by rising Treasury yields and volatile oil prices, as traders awaited US economic data for clues on the Federal Reserve's rate path. The dollar index was slightly higher at 101.2, on track for its best monthly gain since June. The euro traded near a three-month low at $1.1367 after the European Central Bank chief signaled measured inflation steps, while sterling was steady at $1.3248. US Treasury yields hit multi-year highs, with the 10-year at its highest since 2007 and the two-year near 5%, as markets priced in over a 70% chance of a Fed rate hike by late October. Upcoming US data, including the PCE price index and nonfarm payrolls, are expected to support further rate hikes. Brent crude approached $106 per barrel amid doubts over Iran ceasefire efforts, while the yen weakened to 157.40 per dollar, keeping traders alert to intervention risks.