European Stocks Slip as Iran Tensions Offset Strong Eurozone Data 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
South Korea, US Discuss Warship Building Cooperation 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
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The U.S. dollar strengthened for a fourth consecutive session on Thursday, reaching its highest level in nearly two months as rising oil prices, surging Treasury yields and expectations for further Federal Reserve rate hikes supported the greenback.
The U.S. Dollar Index, which measures the currency against six major peers, rose 0.2% to 101.26, its strongest level since July 28.
Oil prices advanced for a second session as hopes faded for a diplomatic breakthrough between the United States and Iran. President Donald Trump and Iranian President Masoud Pezeshkian traded sharp rhetoric during the United Nations General Assembly, while negotiations over the Strait of Hormuz remained unresolved.
U.S. Secretary of State Marco Rubio said discussions with Iran represented a continuation of previous talks rather than a major breakthrough. Reports that negotiators discussed a phased agreement involving reopening the Strait of Hormuz and easing U.S. economic restrictions briefly pressured oil prices before gains resumed.
Meanwhile, U.S. Treasury yields climbed sharply. The benchmark 10-year yield jumped 8.9 basis points to 5.205%, its highest level since July 2007.
Strong economic data reinforced expectations that U.S. interest rates could rise further. S&P Global reported that business activity expanded in September at its fastest pace since July 2021, while input-cost inflation reached its highest level since October 2022, largely due to higher fuel and transportation expenses.
Markets consequently increased expectations for an October Fed rate hike, with the probability of a 25-basis-point increase rising to nearly 69%, compared with roughly 55% a week earlier.
Elsewhere, the Chinese yuan held near 6.7128 per dollar as President Xi Jinping visited Washington for talks with Trump focused on trade and artificial intelligence.
The Japanese yen weakened for a fifth consecutive session, pushing USD/JPY up 0.3% to 158.84 amid concerns that last week’s Bank of Japan rate increase was insufficiently hawkish. In Europe, the euro traded near $1.1380, while sterling slipped 0.2% to $1.3217 as broad dollar strength weighed on major currencies.
