Dollar hits 10-month high

LONDON/SINGAPORE, Sept 26 (Reuters): The dollar rose to a new 10-month peak on Tuesday as US bond yields hit their highest level since October 2007, while the Japanese yen recovered from an early dip, with traders on alert for signs of government intervention.
Federal Reserve policymaker Neel Kashkari said on Monday that, given the strength of the U.S economy, interest rates should probably rise again and be held "higher for longer" until inflation falls back down to 2 per cent.
His comments helped push up the yield on the 10-year US Treasury - the benchmark US yield that sets the tone for borrowing costs around the world - to 4.566 per cent on Tuesday. Bond yields move inversely to prices.
Higher US yields boosted the allure of the greenback, pushing the dollar index to 106.2, the highest since late November 2022. The index, which tracks the currency against six major peers, was last up very slightly at 105.96.
The euro was last up 0.1 per cent against the dollar at $1.0596, having hit its lowest since March at $1.057 earlier in the session.