Greenback is backed up by US rate view
On Tuesday, the evergreen buck fluctuated close to its highest peak for two months against other key currencies, thus following surging hopes on an imminent American interest rate lift, while the Australian dollar suddenly strengthened due to local strong data.
On Monday, the greenback index against six key currencies soared to 95.968, having leapt 4.4% from its 15-1/2-month minimum achieved earlier this month at 91.919. Last it traded at 95.662.
The latest spark for greenback bulls came from Janet Yellen, Fed Chair, who told on Friday that a rate lift in the nearer months would be for good, if the US economy along with labor market kept going up.
On Monday, the common currency tumbled to as low as $1.1097, the lowest minimum since mid-March, though it managed to rebound from that level. Last it traded at $1.1150.
The greenback also hit a one-month peak of 111.455 yen on Monday right before rebounding to 111.09 yen.
Better-than-expected industrial output data as well as month-end buying by Japanese exporters backed up the Japanese yen.