Forex News Feed - Dollar Hits 7-Week Highs as regards Rising U.S. Yields


The U.S. dollar rose to seven-week highs nearby a currency basket more or less Wednesday, driven by rising Treasury yields as soon as the U.S. 10-year sticking together agree to reach its highest level past facilitate in 2014.

The U.S. dollar index, which measures the greenback's strength adjoining a basket of six major currencies, rose 0.31% to 90.84 by 03:56 AM ET (07:56 AM GMT), its highest level into the future March 1.

The dollar was boosted by rising U.S. yields and the prospect of a faster pace of rate hikes by the Federal Reserve this year.

Expectations of distant collective rates make the dollar more handsome to investors seeking to submit. The agree concerning 10-year U.S. Treasury comments rose above 3% for the first epoch past 2014 on the subject of Tuesday, a sign of confidence in the perspective of the U.S. economy.

Data upon Tuesday showing that U.S. subsidiary home sales and consumer confidence were both stronger underlined expectations that the economy will continue to amass in the coming months.

The dollar hit roomy two-and-a-half month highs adjoining the yen, taking into consideration USD/JPY rising 0.38% to 109.23.

The dollar pared assist on gains adjoining the yen upon Tuesday as declines in U.S. equities bolstered affix port request for the Japanese currency. Wall Street ended tersely lower in the company of warnings by companies of higher costs arising out of the surge in sticking together yields.

The euro was lower adjacent-door to the dollar, as soon as EUR/USD the length of 0.29% to 1.2197, within sight of Tuesdays two-month trough of 1.2181.

Investors were looking ahead to the European Central Banks monetary-policy meeting upon Thursday to gauge whether officials are growing more confident upon the inflation viewpoint.

The pound approached its recent five-week lows, in imitation of GBP/USD losing 0.21% to trade at 1.3948.

The Australian and New Zealand dollars plumbed well-ventilated four-month lows, as soon as AUD/USD the length of 0.41% to 0.7572 and NZD/USD off 0.56% at 0.7079.