LONDON—The dollar tiptoed higher for a 3rd consecutive day on Friday since a surprisingly strong U.S. inflation print shocked markets and prompted investors to advance their bets on a U.S rate hike to as early as mid-2022.
With short-dated U.S. Treasury yields edging higher—five-year bond yields rose to a February 2020 high—investors ramped up bets that U.S. policymakers will be forced to raise interest rates sooner than later.
