WASHINGTON (dpa-AFX) - The U.S. dollar scored solid gains against some of its peers on Monday as Treasury yields rose amid expectations of aggressive rate hikes and policy tightening by the Federal Reserve.
The dollar index, which surged to 99.37, pared some gains subsequently and is hovering around 99.15, still up nearly 0.4% from the previous close.
The 10-year US Treasury yield climbed above 2.5%, its highest level in nearly 3 years, as rising inflation risks fueled expectations of aggressive policy tightening.
Against the Euro, the dollar, the dollar is trading at $1.0988, down slightly from the previous close of $1.0982.
The dollar is trading at $1.3094 against Pound Sterling, firming from $1.3181.
Against the Yen, the dollar climbed to a six-year high in the Asian session, fetching 125.04 yen a unit. However, it pared some gains as the day progressed and was fetching 123.90 yen a little while ago, compared with 122.05 yen on Friday.
The yen slid after the Bank of Japan intervened in the forex market to contain a spike in government bond yields above its target band. The BOJ offered to purchase 10-year bonds in unlimited amounts to defend the yield target of 0.25%.
The intervention came after the yield on the 10-year bonds moved up toward the implicit 0.25% upper limit that was set around its 0% target.
Against the Aussie, the dollar is trading 0.7493, up from the previous close of 0.7515.
The Swiss franc is trading at 0.9347 against the dollar, easing from 0.9307. Meanwhile, the Loonie weakened to C$1.2528, weighed down by weak crude oil prices.
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