Dollar improves

TOKYO: The dollar inched up on Wednesday, approaching its recent four-month high as the U.S. 10-year bond yield poked above 3 percent to hit its highest level since early 2014.The dollar index against a basket of six major currencies rose 0.1 percent to 90.844. It had climbed overnight to 91.016, highest since Jan. 12, before a slide in Wall Street stocks tempered investor risk appetite and slowed the greenback´s rally against its peers, notably the yen.

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

"Revived expectations that the U.S. economy would perform well thanks to tax cuts and increased fiscal spending are supporting the dollar," said Shin Kadota, senior strategist at Barclays in Tokyo.

"Yields rose and equities slipped before but the situation is a little different, as expectations towards the U.S. economy are now stronger," Kadota said.

Tuesday´s data on U.S. consumer confidence and new home sales, both stronger in April, bolstered the case that the world´s biggest economy will continue to grow in the coming quarters.