The dollar stabilized near its highest level in two months on Tuesday, supported by a rise in US Treasury bond yields and a rise in oil prices, but its gains remained limited as investors awaited US economic data this week in search of indications on the path of interest rates at the Federal Reserve.
The dollar index, which measures the performance of the US currency against a basket of major currencies, rose slightly to 101.2 points, heading for monthly gains of 1.8 percent, which will be the strongest since June.
The euro settled near its lowest level in three months at $1.1367, after the head of the European Central Bank indicated that calculated steps were being taken to contain inflation, while the pound sterling settled at $1.3248, near its lowest levels in three months.
In energy markets, oil prices rose again, with Brent crude trading near $106 a barrel, as markets doubted the ability of renewed efforts to end the war in Iran to achieve progress, after US President Donald Trump rejected an Iranian ceasefire proposal.
At the same time, the continuing wave of selling in US Treasury bonds pushed yields to new highs. The 10-year bond yield reached its highest level since 2007, while the 30-year bond yield reached its highest level since 2004, while the two-year bond yield, which is more sensitive to monetary policy expectations, rose to its highest level in more than two years, approaching 5 percent.
Joseph Capurso, head of foreign exchange research at Commonwealth Bank of Australia, said that the dollar's gains are still limited as investors await US data later in the week, noting that markets have become less sensitive to oil movements, while the global wave of selling in bonds has limited the usual positive impact of rising Treasury yields on the US currency.
He added that the release of stronger-than-expected US economic data may reinforce the belief that the US economy is still more robust compared to other economies, which may push US interest rates and the dollar higher.
Markets are awaiting the release of a set of US data, led by the personal consumption expenditures price index on Wednesday, and the non-farm payrolls report on Friday, amid expectations that the data will support continued monetary tightening and raise interest rates.
Markets are currently pricing in a probability of more than 70 percent that the Federal Reserve will raise interest rates at the end of October, up from 57 percent a week ago, according to the CME Group's Fed Watch tool.
In Australia, the Reserve Bank of Australia is expected to raise its key interest rate later, while the Australian dollar and New Zealand dollar fell 0.1 percent to $0.7013 and $0.5660, respectively.
The Japanese yen fell slightly to 157.40 against the dollar, giving up part of its gains recorded on Monday, after Atsushi Mimura, Japan's chief currency official, said that the markets should take into account the "very clear" warning issued by Tokyo and Washington last week regarding the weakness of the yen, which kept traders on alert for the possibility of authorities intervening in the exchange market.
The Chinese yuan traded outside the country stabilized at 6.71 against the dollar, after the three-day summit between Trump and Chinese President Xi Jinping last week produced limited results.
The Australian Central Bank raised interest rates by 25 basis points to 4.6 percent, their highest level in 15 years, continuing to tighten monetary policy in the face of inflation that is still above target, at a time when the repercussions of the war in the Middle East are increasing pressure on energy prices.
The increase, which was expected by economists polled by Reuters, brought the central bank to raise interest rates for the fourth time this year, for a total of 100 basis points, with inflation continuing above the target range of between 2 and 3 percent.
Inflation reached its highest level this year at 4.6 percent in March, before falling to 3.5 percent in July, but it was higher than market expectations. Inflation data for August is scheduled to be released on Wednesday.
The Australian Central Bank said at its previous meeting that inflation “is still very high,” pointing to continued domestic price pressures and high energy costs related to the war with Iran.
An analysis by Bank of America last week showed that inflation is accelerating instead of approaching the central bank’s target, considering that consumer price data in July constituted the clearest indication of this shift, in light of the rise in core inflation in recent months.
The bank added that there are indications that the increase in energy costs is being transmitted to other prices, which enhances the risks of inflation becoming entrenched for a longer period.
On the other hand, the central bank warned of a slowdown in growth as borrowing costs rise. The Australian economy grew 2.1 percent in the second quarter on an annual basis, compared to 2.5 percent in the first quarter.
Anthropic, an artificial intelligence company, is betting that technology will bring about a transformation in the global economy whose impact exceeds the industrial revolution and the invention of electricity and the Internet, but at the same time it reveals a huge bill to finance this ambition, as it prepares for a public offering that may be valued at more than two trillion dollars.
The company's prospectus, which Reuters reviewed, showed that Anthropic recorded a net loss of approximately $42 billion in 2025, while it plans to assume liabilities worth $518 billion in the coming years related to computing, cloud services, and infrastructure.
The company's revenues jumped 12-fold during 2025 to about $4.6 billion, but its operating loss widened to $8.06 billion, compared to $2.98 billion in 2024, excluding write-offs of various obligations, most of which were linked to previous financing rounds.
The company spent $7.33 billion on computing and infrastructure last year, tripling its spending in 2024, making these expenses more than half of the total operating expenses of $12.65 billion.
The expected public offering would place Anthropic, which was founded only five years ago, in the heart of the stock market, and make its valuation an important indicator of how Wall Street prices major artificial intelligence companies, most notably its competitor, OpenAI.
The offering plans come at a time when the company faces questions about the potential risks of the advanced systems it is developing. Research conducted by Anthropic itself has shown that increasingly autonomous AI models can behave in unexpected ways in controlled tests, including subverting code, aiding fraud, and manipulating information.
These findings have prompted an escalating debate about companies' ability to keep more powerful systems under control as their commercial use accelerates. Anthropic CEO Dario Amodei called on the global AI community to slow the pace of rolling out new capabilities to address these concerns.
Meanwhile, last week, the company launched its new model, “Opus 5.5,” in an attempt to compete with the momentum of “OpenAI,” which launched the “GPT-6 Astra” model and is in turn preparing for an expected public offering.
A $2 trillion bet
Anthropic's target valuation for the offering more than doubles the previous estimate of its value, which amounted to $965 billion in May, in a jump that reflects the rapid rise in the valuations of artificial intelligence companies.
The net loss of about $42 billion includes accounting fees of approximately $34 billion, reflecting an increase in the estimated value of financing that may turn into shares in the company in the future, and not money it spent operating its business.
The company also warned of the concentration of its revenue base, as about a quarter of revenues came from two clients over the past year, while many of its largest clients are not linked to long-term contracts, which allows them to reduce or stop their spending.
Anthropic's cash, cash equivalents, and short-term investments amounted to $20.28 billion at the end of December.
Anthropic's offering is expected to come after SpaceX's massive public offering, which estimated the company's value at about $1.77 trillion, putting investors at high valuations for fast-growing technology companies.
Shares of artificial intelligence and chip companies have declined recently, making Anthropic's offering an additional test of the ability of investors' enthusiasm for the sector to withstand scrutiny of valuations and high growth expectations.
Anthropic competes mainly with OpenAI for corporate clients, talent and influence in Washington, along with SpaceX's XAI, Google and Meta. Amazon and Google are also among its most prominent early strategic partners, and have invested billions of dollars in the company, in addition to providing the cloud infrastructure necessary to train and operate Cloud models.
