The dollar rises against the euro and hits a two-week high against the yen

The euro moved further away from its monthly high on Wednesday and the dollar rose, supported by higher US Treasury yields as global inflation fears escalated again.

The dollar index, which measures the performance of the US currency against six major currencies, including the euro, rose 0.2 percent to 101.96, extending gains since Tuesday when data showed consumer inflation in the eurozone rose to a record level.

The euro was down 0.2 percent against the dollar, continuing to retreat from a one-month high of $1.0787 reached on Monday, when national consumer price index readings for eurozone countries pointed to higher inflation.

The dollar rose 0.4 percent to 129.395 yen, after earlier touching 129.54, the highest level since May 17, as higher US Treasury yields pushed them up.

The yield on the benchmark 10-year Treasury rose 2.5 basis points to 2.8694 percent, after touching 2.888 percent earlier, the highest level since May 19.

The dollar was little changed against its Canadian counterpart ahead of the Bank of Canada’s rate-setting meeting later on Wednesday when it is widely expected to increase by 50 basis points.

The Australian dollar rose 0.1 percent to $0.7185, and the New Zealand dollar fell 0.1 percent to $0.65065.

The British pound was stable against the dollar at $1.2605.

As for cryptocurrencies, Bitcoin fell 0.9 percent to $31,467. Ether, the smaller one, fell 0.6 percent to $1,928.