The U.S. dollar was on track for a third consecutive week of gains on Friday, reaching a 17-month high as a global bond sell-off drove borrowing costs toward multi-decade peaks. The 10-year Treasury yield reached 5.344% on Thursday, its highest level since 2002, before easing to 5.249% in early Friday trading. The dollar index stood at 102.08 and was set for a 1% weekly gain. The euro traded near $1.1237, its lowest level since May 2025, amid concerns about France’s fiscal position, while the yen held at 158 per dollar. Investors were focused on the U.S. payroll report after softer-than-expected August consumer-price data and downward revisions to July reduced bets on a Federal Reserve (U.S. central bank) rate increase later in October. Analysts said persistent inflation, heavy government borrowing, large bond supply and rising term premiums (extra yield for holding longer-term bonds) were driving markets alongside expectations for monetary policy. Brent crude returned above $100 a barrel as talks between the United States and Iran to end the conflict in the Middle East remained stalled. Sterling, the Australian dollar and the New Zealand dollar traded near recent lows, while political and fiscal concerns in Europe continued to weigh on the euro.