Dollar surges

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TOKYO: The dollar hovered near a two-month high against a basket of currencies on Wednesday, lifted by hawkish comments from a Federal Reserve official and higher U.S. Treasury yields.

The euro also extended its bounce following a report of potential changes to European Central Bank policy.

But the pound marked fresh, three-decade lows amid concerns that Britain´s separation from the European Union could be rocky and have grave economic consequences.

The dollar index stood at 95.989, in sight of 96.442, its highest since Aug. 9.The greenback was already on a strong footing after rallying at the start of the week on an upbeat survey of the U.S. manufacturing sector.

It got an additional lift after Richmond Federal Reserve President Jeffrey Lacker said on Tuesday there was a strong case for raising interest rates and as Treasury yields rose to two-week highs in response to a surge by their euro zone counterparts. The euro rose 0.2 percent to $1.1222, extending the bounce from the previous day when it swung widely on speculation over ECB monetary policy. The common currency had slid on Tuesday to a low $1.1138 against the bullish dollar before climbing back to a peak $1.1239.