The US dollar rallied against a basket of major currencies on Tuesday to its highest since December, helped by a rise in US Treasury yields and as data showed US retail sales increased moderately in April. The dollar index, which measures the greenback against a basket of six other currencies, was up 0.8 percent at 93.332, after rising as high as 93.457. Against the yen, the dollar was up 0.57 percent at 110.27 yen, its strongest since early February.
"The resurgent tone for the US dollar is largely due to, number one, the move higher in Treasury bond yields across the curve and number two, the relatively solid data we saw on retail sales," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc in Washington D.C. The yield on the US 10-year Treasury note surged on Tuesday morning to its highest since July 2011 following data showing retail sales increased moderately in April.
The euro fell to a fresh 2018 low of 1.1821, after weaker-than-expected economic growth in Germany. The Turkish lira fell to a fresh record low of against the dollar, bringing its losses this year to more than 13 percent after President Tayyip Erdogan said he plans to take greater control of the economy. Argentina's peso plunged to a new record low despite hefty central bank interventions in the past few days. Sterling was down 0.6 percent against the greenback at $1.3473, despite robust hiring by British firms in the three months to March.
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