NEW YORK: The US dollar hit a 3-1/2 month high on Monday as elevated US Treasury yields spooked investors and boosted the greenback’s safe-haven appeal. After falling 4% in the last quarter of 2020, the dollar has strengthened by nearly 2.5% year-to-date as investors expect the broad rise in US bond yields to weigh on stretched equity valuations and boost demand for the US currency.

“If we continue to see yields rise, that’s going to be very dollar positive and there’s nothing really getting in the way,” said Edward Moya, senior market analyst at OANDA in New York. The dollar index stood at 92.21 against a basket of six major currencies, up 0.35%, easing off of an intraday high of 92.34, its highest level since Nov. 24.

The Australian dollar weakened 0.08% to $0.7674. The New Zealand dollar was down about 0.29%. The currencies have been in demand because of their links to global commodities trading, but the dollar’s bounce dented both.

The dollar held near a one-month high against the British pound, at $1.3819. Against the low-yielding yen JPY=EBS, the greenback held firmer at 108.56 yen, having hit a nine-month high of 108.645 on Friday.