The Australian dollar held its recent decline below $0.72, staying near its lowest in more than a week and on track for a weekly loss as the US dollar strengthened alongside a sharp rise in Treasury yields. The greenback gained after US producer inflation came in stronger, reinforcing expectations that the Fed could raise rates next week. A sharp rise in Treasury yields also underpinned the dollar following lower-than-expected purchases by the US Treasury Department during its first expanded buyback operation. Meanwhile, oil prices continued to rise above $100 per barrel amid the escalating Middle East tensions, raising inflation risks and expectations that central banks may keep policy tighter for longer. Markets ramped up bets on a fourth rate hike this year by the Reserve Bank of Australia, with swaps now implying an 84% chance of a 25-bp increase at the upcoming meeting this month. Markets also expect the cash rate to reach 4.85% by early next year, its highest level since 2008.