TOKYO: The dollar rose to a six-day high against the yen on Wednesday as crude oil prices rallied and pushed Treasury yields higher after U.S. President Donald Trump pulled out from an international nuclear deal with Iran.
The greenback also gained on the euro as concerns about Italian political turmoil hurt the common currency.
The dollar was 0.3 percent higher at 109.480 yen after touching 109.640, its highest since May 3.The dollar index against a basket of major currencies was marginally higher at 93.206. The U.S. currency was lifted as long-term Treasury yields climbed to two-week peaks with crude oil prices surging more than 2 percent to their highest since November 2014."The dollar is firmer overall, particularly against the yen, stirred once again in the aftermath of President Trump´s decisions with U.S. yields rising and oil on the move," said Bart Wakabayashi, Tokyo Branch Manager of State Street. "Opinion seems divided among market players on how far higher U.S. yields can go, so the dollar could be in for turbulence going forward.
"The 10-year Treasury note yield was about 2 basis points higher at 2.989 percent. A rise above 3.035 percent scaled on April 25 would take it to its highest since early 2014. —Reuters