USD at a 10-month high as interest rates concerns persist

The dollar rose to its highest level in ten months against a basket of major currencies on Wednesday, sending the euro and sterling to the lowest level in six months and raising the possibility of intervention to support the yen, as expectations of US interest rates remaining high for a longer period continue to dominate the markets.

In the latest transactions, the euro fell 0.14 percent to $1.05575 after reaching its lowest level in six months at $1.05555 earlier in the session. The euro is heading towards a quarterly loss of more than three percent, which is the worst quarterly performance in a year.

Sterling fell 0.09 percent to $1.2146 after hitting a six-month low of $1.2141 earlier on Wednesday. Sterling is heading towards a quarterly loss of more than four percent.

The dollar index rose to its highest level in ten months at 106.30.

The rise in US Treasury bond yields caused the yen to falter, which rose slightly against the dollar to 149.03 yen after falling to an 11-month low of 149.185 on Tuesday.

Some experts believe that exceeding the threshold of 150 yen per dollar may force the Japanese authorities to intervene to support the currency, as they did last year.

The Australian dollar fell 0.20 percent to $0.6385.

The New Zealand dollar fell 0.23 percent to $0.5931.