2018.04.2502:37:00UTC+00Dollar Climbs as U.S. Yields Rise to 4-Year Highs

The dollar climbed on Wednesday, moving near its recent four-month high as the U.S. 10-year bond yield jumped to the significant three percent mark to notch its strongest level since early 2014.

The dollar index against a basket of six major currencies was up by 0.2 percent. It had climbed overnight to 91.016, highest since Jan. 12.

The greenback had risen without pause through much of the past week as U.S.-China trade conflict jitters receded and allowed the market to turn its attention back to dollar-supportive fundamentals, notably the surge by U.S. yields.

The dollar stood at 108.87 yen after having jumped to a 2-½-month high of 109.20 yen set on Tuesday, when the S&P 500 and the Dow posted their biggest declines since April 6.

This week the gap between U.S. and German 10-year government bond yields has reached its widest in 29 years and the U.S.-Japanese 10-year yield spread reached its broadest in almost 11 years.

The euro traded at $1.226, not far from Tuesday's trough of $1.2182, a low last seen on March 1.

The Australian dollar was down 0.4 percent at a four-month low of $0.7572.