The dollar rose to its highest level in ten months against a basket of major currencies on Wednesday, sending the euro and sterling to their lowest level in six months and raising the possibility of intervention to support the yen, as expectations of interest rates in the United States remaining high for a longer period continue to dominate the markets.
The euro fell in the latest transactions by 0.14% to $1.05575 after reaching its lowest level in six months at $1.05555 earlier in the session. The euro is heading towards a quarterly loss of more than 3%, which is the worst quarterly performance in a year.
Sterling fell 0.09% to $1.2146 after hitting a 6-month low at $1.2141 earlier on Wednesday.
Sterling is heading towards a quarterly loss of more than 4%, and the dollar index rose to its highest level in ten months at 106.30.
Bond yields rise
The rise in US Treasury bond yields caused the yen to falter, which rose slightly against the dollar to 149.03 yen after falling to its lowest level in 11 months at 149.185 yesterday, Tuesday.
Some experts believe that exceeding the threshold of 150 yen per dollar may force the Japanese authorities to intervene to support the currency, as they did last year.
The Australian dollar fell 0.20% to $0.6385, and the New Zealand dollar fell 0.23% to $0.5931.
