2018.04.2403:12:00UTC+00Dollar Hits 3-Month High, U.S. 10-Year Bond Yield Near 3%

The dollar scaled a three-month high against a basket of currencies on Tuesday, having gained support as the U.S. 10-year Treasury yield rose towards the psychologically key 3 percent level.

The U.S. 10-year bond yield later backed off that level and stood at 2.964 percent in Tuesday's Asian trade.

U.S.-Japan and U.S.-German yield differentials have recently widened in the dollar's favor, leaving the yen and the euro lower.

The dollar index, which measures the greenback against a basket of peer currencies, stood at 91.076, its strongest since Jan. 12. The index was last steady on the day at 90.929.

The greenback notched a two-month high of 108.87 yen and last traded at 108.82 yen, up 0.1 percent on the day.

On Monday, the dollar had jumped almost one percent for its biggest daily percentage rise in almost a month, gaining added steam after breaching the 108 yen level.

The euro was steady at $1.2209, having pared its losses after falling to $1.2185 earlier on Tuesday, the lowest for the common currency since March 1.

The rise in U.S. bond yields has dented emerging market currencies and bond markets, including those in Asia.