NEW YORK: The dollar index rose to a three-week high on Monday as investors bet on faster growth and inflation in the United States, while the Australian dollar gained after Australia’s central bank increased its bond purchases in a bid to stem rapidly rising yields.

The dollar has gained in the past few sessions as US government bond yields jump on expectations that growth and inflation will increase as the administration prepares new fiscal stimulus and vaccinations against COVID-19 become more widespread.

Benchmark 10-year Treasury yields edged higher to 1.432% on Monday, but are holding below the one-year high of 1.614% reached on Thursday.

The dollar index rose 0.28% to 91.009, after earlier reaching 91.127, the highest level since Feb. 8.

The euro fell 0.17% against the greenback to $1.2048.

Traders were also waiting for a speech later on Monday by President Christine Lagarde, who is under pressure to act against rising yields in the euro zone.

The Aussie was last at $0.7757, after dropping to $0.7693 on Friday.

The safe haven yen reached 106.77 against the dollar, its weakest level since Aug. 28. In cryptocurrency markets, bitcoin rose 6.69% to $48,275 but was still off a record high of $58,354.14 hit on Feb. 21.