By Agency Reporter

Wednesday, 17 Nov 2010

The dollar hit a six-week high against the euro on Tuesday, supported by a rise in United States Treasury yields.

However, it later retreated as officials from the Federal Reserve sounded a dovish tone and defended its easing policy.

According to a Reuters report on Tuesday, the 10-year US Treasury yield jumped about 17 basis points on Monday and hit a three-month high near three per cent, giving a broad lift to the greenback.

The dollar index, which measures the dollar‘s value against a basket of currencies, hit a six-week high of 78.744 .DXY earlier and the euro, also pressured by concerns over euro zone debt, touched a six-week trough of $1.4.

But the euro later recovered some ground to $1.4, rising 0.2 per cent on the day, as New York Fed President William Dudley said the need to exit from current policies could be ”years away,” following up dovish remarks from Fed vice-chairwoman, Janet Yellen.

Source: Punch