US Dollar Reaches Two-Week High as Rate Expectations and Conflict Risks Lift Demand
The US dollar has advanced to a two-week high as bond yields, Federal Reserve expectations and geopolitical risk support demand for the currency.
Trusted Insights. Asian Perspective.
The US dollar has advanced to a two-week high as bond yields, Federal Reserve expectations and geopolitical risk support demand for the currency.
Canadian equity futures were little changed ahead of the Bank of Canada’s rate decision as investors balanced oil strength against higher bond yields.
Australian equities fell broadly as higher oil prices and rising bond yields revived inflation concerns and expectations of tighter monetary policy.
A global outlook projects US$31.6 trillion of data-centre capital expenditure through 2050, with annual spending rising from US$800 billion in 2026 to US$1.8 trillion in 2050. Asia-Pacific could attract US$8.2 trillion and the United States 48% of the total. Recurring technology upgrades are expected to drive most investment.
The central bank raised its cash rate 25 basis points to 2.75% after inflation reached 4.1%; it expects inflation back within 1% to 3% by mid-2027.
Global investors may want to reduce US exposure, but the Treasury market’s scale and institutional infrastructure remain difficult for rival markets to match.
Gold’s sharp retreat shows how rising real yields and a firmer dollar can overpower haven demand and reset precious-metals positioning.
European shares began September defensively as rising sovereign yields, firmer oil prices and mixed corporate moves sharpened investor scrutiny of valuations and policy risk.
Britain will define its route toward NATO defence-spending targets as major funding requirements test fiscal rules, government bonds and procurement planning.
Gold held near a two-week low as Middle East tensions supported haven demand, while higher yields and rate-hike expectations limited gains.