Dollar Could Ease if Investors View Higher Treasury Yields as Buying Opportunity -- Market Talk

1123 GMT - The dollar's rally could lose steam if Treasury yields ease ahead of the Federal Reserve's October 28 meeting, UniCredit's Roberto Mialich says in a note. Investors could view currently high U.S. yield levels as a buying opportunity, taking some shine off the dollar, he says. "A decline in U.S. yields could reduce safe-haven demand." However, political tensions across the eurozone could also act as a brake against a full-fledged recovery in the euro versus the dollar. The rise in U.S. yields appears driven by a market overreaction to the Fed's signals about raising interest rates further rather than long-term fundamentals, he says. The euro falls 0.6% to $1.1191 after reaching a 16-month low of $1.1160 Monday, LSEG data show. (renae.dyer@wsj.com) (END) Dow Jones Newswires October 07, 2026 07:23 ET (11:23 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dea