The dollar rose to a two-week high against major rivals in early trading on Thursday, after the currency received support from rising US yields and demand for safe-haven assets.
The dollar rose to a two-week high against the euro and extended its recovery from a more than two-month low against the pound, after a two-day jump of 15 basis points above 4.6 percent for long-term Treasury yields after more data showing the strength of the U.S. economy and some bond auctions fell short of expectations.
The bond market slump has unnerved investors and stocks globally have fallen sharply this week, prompting a rush to safer assets.
The dollar index, which measures the currency against six major currencies including the euro, the British pound and the Japanese yen, reached its highest level since May 14 at 105.15 on Thursday, after rising 0.5 percent in the previous session.
The euro fell to $1.0796 for the first time since May 14, and sterling fell to $1.2696, extending its decline after reaching $1.2801 on Tuesday for the first time since March 21.
However, the yen rose from a four-week low of 157.715 yen per dollar hit overnight to last trade at 157.505 yen per dollar.
