The dollar, on Tuesday, February 21, strengthened against its rival currencies as comments from a Federal Reserve official drove up U.S. Treasury yields and with them, demand for the U.S. currency.
The ICE U.S. Dollar Index DXY, +0.60% , which gauges the buck against a basket of six rivals, rose 0.6% to 101.47. The WSJ Dollar Index BUXX, +0.50% , a measure of the U.S. dollar against 16 major currencies, was up 0.4% at 91.38.
Against its Japanese counterpart, the greenback USDJPY, +0.55% advanced to ¥113.67 compared with ¥113.12 late Monday in New York.
The euro EURUSD, -0.7538% weakened to $1.0584, compared with $1.0614 late Monday.
The latest catalyst pushing the dollar higher was a rising yield on the benchmark U.S. Treasury TMUBMUSD10Y, +0.38% note following comments by Philadelphia Federal Reserve Bank President Patrick Harker, said Akira Moroga, manager of forex product group at Aozora Bank.
Higher rates boost the U.S. currency by making dollar assets more attractive to yield-seeking investors, MarketWatch reports.
