NEW YORK: The dollar edged higher on Wednesday, helped by US Treasury yields recovering from one-week lows and as concerns about the economic impact of COVID-19 lingering in Europe led investors to show a preference for the US currency.
The dollar index, which touched a four-month high earlier in the session, was supported by safe-haven flows as some investors fretted over potential US tax hikes.
The dollar rose against a basket of currencies to 92.5210. Yields on the 10-year Treasury rose a bit to 1.642% but stayed below recent highs as investors looked ahead to an auction on Wednesday.
Euro-dollar was down 0.25% at $1.1820 on Wednesday.
The safe-haven yen rose 0.32% in morning trading in the United States.
Australia’s dollar - considered a liquid proxy for risk - weakened further on Wednesday. The Aussie slipped to as low as $0.7582, a level not seen since Feb. 5, before recovering.
The British pound weakened as far as $1.3675, also the lowest since early February.
In cryptocurrencies, bitcoin gained 4.11% to $56,503, off a record high of $61,781.83.
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