Dollar stable

LONDON: The dollar stabilised on Tuesday just below its six-month high of last week, as investors awaited data that might confirm the U.S. economy is on track for a strong June quarter with rising bond yields also supporting the greenback.

Short-dated U.S. Treasury yields are up by roughly 20 basis points in a week pushing two-year government yields to 2.50 percent and within kissing distance of a decade high of 2.59 percent hit last month.

With correlations between short-dated U.S. debt yields and the dollar strengthening to their strongest since January 2017, investors have responded by buying the greenback in recent days, especially against the euro and emerging market currencies.

"The dollar is perched around some important levels and its strength can be judged from the fact that the euro/dollar has failed to break above the $1.17 line despite falling Italian political concerns," said Kenneth Broux, a strategist at Societe Generale in London.

The greenback was firm at 94.04 against a basket of rivals. It had climbed to 95.02 last week, its highest since early November 2017, and has risen more than 5 percent since mid-April.