Forex – Dollar near 7 Week Highs Boosted by Treasury Yields

© Reuters. Dollar near 7 week highs boosted by Treasury yields – The dollar was holding steady near seven week highs against a basket of the other major currencies on Tuesday, boosted by rising Treasury yields.

The , which measures the greenback’s strength against a basket of six major currencies, was at 90.70 by 03:18 AM ET (07:18 AM GMT), after hitting an overnight high of 90.84, the strongest level since March 1.

The yield on hit its highest in more than four years at 2.998% on Monday, as strengthening inflation prospects added to expectations for a faster rate of monetary tightening from the Federal Reserve.

The yield later backed off that level and was last at 2.960%.

The dollar hit ten-week highs against the safe haven yen, with up 0.15% to 108.87 after surging 0.83% on Monday.

The Japanese currency, which is often sought in times of market turmoil and political uncertainty and tends to decline as investor confidence returns, has weakened in recent sessions as worries over geopolitical risks and trade tensions waned.

The euro was near seven-week lows, with last at 1.2204 after plumbing an overnight low of 1.2185.

The pound was trading at one-month lows, with at 1.3932 as doubts over a prospective rate hike by the Bank of England next month weighed.

Last week the pound had surged to its highest level since the June 2016 Brexit vote.

Sterling was also pressured lowed by renewed uncertainty over ahead of a report on first quarter growth later in the week.

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