Dollar perched at two-month high as hot PMI fuels inflation fears, rate hike bets

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The dollar continues to hold its ground due to robust manufacturing data, which has ignited concerns about inflation and possible rate increases. A poorly executed Treasury auction has led to climbing yields, bolstering the dollar's attractiveness. Both the euro and sterling have dropped to their lowest points against the dollar in two and three months respectively. With signs of potential overheating in the U.S.