Dollar rides yield surge as Middle East and trade wars raise inflation stakes

The US dollar strengthened to a three-week high near 101.45 against a basket of currencies as oil prices climbed back above 100 dollars a barrel after Houthi strikes on Saudi oil tankers in the Red Sea, widening the Middle East conflict. The Trump administration announced new tariffs of 10 percent and 12.5 percent on goods from 60 trading partners over forced labour enforcement concerns, adding to inflation pressures. The benchmark US 10-year Treasury yield surged to an over 18-month high above 4.7 percent, with the 30-year holding above 5 percent, while the yen remained pinned near a 40-year low around 163.86 per dollar, raising concerns of further FII outflows from emerging markets including India.