breaking

Dollar Surges on Inflation Signal; Emerging Markets Stumble

The US dollar logged its strongest week since March after fresh inflation data signaled the Federal Reserve could raise interest rates over the next year. Treasury yields climbed to their highest levels in nearly a year as bond investors retreated amid mounting price pressures. Oil price gains threaten to sustain elevated inflation readings, keeping markets on alert for potential rate action. Emerging-market assets recorded their worst weekly performance since early March, with both stocks and currencies declining sharply on concerns that Middle East tensions could amplify global inflation. Gold fell as investors repriced bets on sustained higher interest rates. Growing expectations that the Fed will maintain restrictive policy longer than previously anticipated are reshaping currency and commodity valuations across multiple asset classes.