Dollar, Treasury Yields Fall; Any Middle East Escalation Could Push Them Higher -- Market Talk

0852 GMT - The U.S. dollar falls to a 10-week low against a basket of currencies as markets scale back expectations for U.S. interest-rate rises, while Treasury yields also decline. Recent weak U.S. jobs and retail sales data, combined with subdued inflation prints, have prompted investors to scale back rate-rise bets. Still, falls could be limited if Middle East uncertainty and consequent inflation worries persist, BankPro's Paolo Broccardo says in a note. Any escalation in tensions could revive demand for safe havens, supporting the dollar while driving oil prices higher and lifting yields, he says. The DXY dollar index falls 0.3% to 99.294, its lowest since early June. The 10-year U.S. Treasury yield declines 2 basis points to 4.677%, according to Tradeweb. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 17, 2026 04:52 ET (08:52 GMT)