The Unite States of America Dollar, on Wednesday, May 9, traded at a fresh high for 2018, largely driven by a rise in Treasury yields helped fuel the dollar’s rally.
The dollar index against a basket of major currencies rose 0.3 percent to 93.377, its strongest since late December.
Against the yen, the dollar rose 0.6 percent to 109.74. DXY was last up at 93.264, and has risen 1.2 percent so far this year.
Trump on Tuesday pulled the United States out of an international nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies.
Souring risk sentiment is hitting emerging markets, which have been clobbered in recent weeks by concerns about capital outflows, as the prospect of higher U.S. interest rates lures investors back to U.S. bonds rather than riskier assets.
Countries with high perceived political risks, such as Brazil and Turkey, were among the worst hit.
The Brazilian real hit a near two-year low BRL= and the Turkish lira TRYTOM=D3 reached a record low. Since the start of this week, those currencies are both down around 1 percent.
The Indonesian rupiah hit a 2-1/2-year low IDR=, and has slid 1 percent this week.
Among major currencies, the risk-sensitive Australian dollar hit an 11-month low of $0.74130 and last stood at $0.74315 AUD=D4.
The euro continued to slide to a fresh 4-1/2-month low of $1.1821 and last stood at $1.1841 EUR=, having declined more than 4 percent in the past three weeks.
The currency was hit by increasing prospects of another election in Italy as the political impasse there has continued since early March’s inconclusive ballot, Reuters reports.
The dollar rose 0.5 percent to 109.70 yen JPY=, edging near its three-month high of 110.02 yen touched last week.
