US currency is trading near the high of the last three and a half months against a basket of currencies due to the higher yields of government bonds. The yield on 10-year Treasuries broke through the level of 3% this week - the first time in four years.
The yield on government bonds with a maturity of 10 years set a new four-year high at 3.035% on Wednesday amid concerns about the growing supply of government debt and inflationary pressure due to rising oil prices.
A break above the level of 3.041% lead to a record level of 10-year yields since July 2011. The recent jump in led to the fact that the difference in yields on US government bonds, and Japan, as well as the USA and Germany increased in favor of the dollar.
"If the US stock markets will not happen very unlikely event of a mass crisis, the Fed is unlikely to be fluctuate in a rate increase in June", - he wrote in a note Steven Innes, head of the department of trade in the Asia-Pacific region in the futures brokerage firm OANDA's, Singapore.
"Given that the mood on the stock market will remain stable in the conditions of growth of profitability of bonds, the almighty dollar can strike a devastating wave of currency markets of G-10", - said Innes.
The dollar index against a basket of six major currencies was 91,136, rising to the highest since January 12, 91,261 on Wednesday.
The euro rose in price by 0.2% to 1.2179, but still near a two-month low of 1.160 against the US dollar, established on Wednesday.
In the short term, the focus will be on the markets of the European Central Bank decision on interest rates. Control meeting will be held on Thursday.
Against the yen the dollar has set a maximum of two and a half months at 109.49, but later fell to 109.30, which is 0.1% lower.
"The dollar may soon test some key technical levels are about 110" - said Teppei Ino, an analyst MUFG Bank in Singapore.
He also added that a key level for the dollar is 109.65, and the other - its 200-day moving average around 110.27.
Since early April, the US currency strengthened by 2.8% against the yen, heading to the maximum monthly increase since November 2016.
"The recent weakness of the Japanese currency, probably partly due to the fact that Japanese investors have increased their exposure to foreign currency at the beginning of the new fiscal year," - said Simon Moon Siong, a currency strategist at Bank of Singapore.
"Despite this, the yen appreciated as diversifikator currency", - he added.
Based on materials WELTRADE