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Dollar rises to 4-month high on rising bond yields

UNITED STATES (OBSERVATORY) –┬áThe dollar hit a four-month high on Wednesday after a record 3-percent rise in US Treasuries yielding a negative impact on some of its counterparts, while a mixed picture of eurozone corporate surveys did not help ahead of a meeting of the European Central Bank.

Asian shares fell on Wednesday after large selling in the US market and warnings from US companies about rising costs, fueling concerns that corporate profits may be coming to an end.

The dollar index, which measures it against a basket of six major currencies, rose 0.4 percent to 91,093. The index rose overnight to 91.076, its highest level since Jan. 12, before a drop in US equities led investors to lower risk appetite.

Against the yen, the dollar hit a two-month high of 109.20 yen hit in the previous session. The dollar was just below that level at 109.18 yen, up 0.3 percent from the previous session.

Sterling fell 0.2 percent to $ 1.3947. The British currency fell to a one-month low of $ 1.3919 on Tuesday before rising 0.3 percent on news of a possible takeover by British drugmaker Takeda of Britain’s Shire.

The Australian dollar was down 0.4 percent at $ 0.7569, falling to a four-month low.

New Zealand dollar losses, which fell to $ 0.7102, the lowest level since Jan. 4.