Rising US Treasury Yields and Stablecoin Strategy Drive Broad Dollar Strength

The US dollar advanced broadly on September 24 as the 10-year Treasury yield climbed above 5.15%, pressuring major currency pairs and undercutting demand for alternative assets. EUR/USD, GBP/USD, AUD/USD, and USD/CAD all moved in the greenback's favor, with the Canadian dollar weakening as US yields lifted the currency. In EUR/USD specifically, traders flagged that hedging demand was evaporating below the 1.14000 level, pointing to further potential downside in spot.

Gold and silver faced significant declines as rising rates and the stronger dollar reduced the appeal of non-yielding metals. The Australian dollar showed technical deterioration, with Elliott Wave analysis pointing to a final leg lower in AUD/USD.

Layering onto the dollar's structural support, the Trump administration is weighing a coordinated overseas push to promote dollar-backed stablecoins through joint ventures with private companies. The Treasury and State Departments are reportedly central to the strategy, with USDC among the key players under consideration. Stablecoin issuers already hold nearly $200 billion in US sovereign debt, ranking them among the largest holders of Treasuries globally, giving the initiative a dual purpose: expanding digital-dollar reach internationally while sustaining demand for US government paper.