The strengthening of the US dollar continued to shine in Asian session trading after moving sharply higher against its major rivals supported by a surge in US treasury yields.
The greenback traded stronger against the yen by rising to a one -month high after 10 -year U.S. bond yields jumped to 1.64% for the first time in six weeks.
The increase was driven by investor confidence that the Federal Reserve (Fed) will continue to be on track to raise interest rates in 2022 as previously expected.
Meanwhile, two-year bond yields, which are sensitive to rate hike expectations, along with 5-year yields, bounced to their highest level since March 2020.
Following the development of European currencies, the euro traded gloomily at around 1.13000 against the USD, trying to defend its position after a sharp fall in the New York session.
The pound sterling also declined following the surge in the greenback dollar, but still maintained gains from the hawkish decision of the Bank of England (BOE) to raise interest rates in December to curb inflation.
Asian currencies, the Aussie dollar and the kiwi also plunged lower on stronger greenback trading, bringing the two currencies to one-week lows.
