The greenback edged higher on Monday, strengthening broadly against G10 peers, though its advance narrowed after an earlier surge that marked the steepest climb since June 17. The Bloomberg Dollar Spot Index rose 0.3% to 1193.91, having earlier looked set to post its best single-day performance since the debut meeting of new Federal Reserve Chair Warsh on that date.

Yields on 10-year U.S. Treasuries pierced the 5% threshold for the first time in three years, reflecting mounting concerns over both inflation and funding pressures. The dollar climbed 0.4% against the yen to 154.22, with the pair's earlier rally representing its most significant jump since August 10.

Meanwhile, the euro slipped 0.3% versus the dollar to 1.1559, as another spike in energy prices stoked inflation worries, prompting traders to boost bets on rate hikes from both the European Central Bank and the Bank of England. Sterling dipped 0.1% to 1.3513 against the dollar, following an unusually blunt remark from BOE Governor Andrew Bailey after the July policy decision: 鈥淧lease don't leave this room thinking the Bank of England is on the verge of raising rates.鈥?lt;br>
The loonie weakened 0.2% against the greenback to 1.3901, with market participants anticipating a swift trade accord between Washington and Ottawa, downplaying the prospect of a U.S. withdrawal from the USMCA pact.