The dollar rose to its highest level in ten months against a basket of major currencies, on Wednesday, sending the euro to its lowest level in nine months, and causing increased possibilities for intervention to support the yen, as investors bet that the US economy will perform better than its competitors thanks to raising interest rates.
US Treasury bonds stabilized after a recent widespread selling wave, although yields remained near the highest levels recorded in 16 years, which maintained strong demand for the dollar.
However, strong US economic data contradicted investors' expectations of a slowdown, and the US Federal Reserve warned last week that it may increase interest rates again and maintain this rise for a longer period.
Price movements
The dollar index, which measures the currency's performance against a basket of currencies, rose to 106.61, the highest level since last November 30.
The euro fell to $1.05125, the lowest level since January 6.
The British pound recorded $1.21310, the lowest level since March 17.
The rise in US Treasury bond yields caused the yen to falter, which fell to its lowest level in 11 months at 149.4 per dollar.
The Australian dollar fell 0.27 percent to $0.6380.
The New Zealand dollar also fell 0.26 percent to $0.5931.
