Dollar Firms Near Two-Month Peak as Oil and US Yields Rise

The US dollar has strengthened to near a two-month high as oil prices and Treasury yields rise.

According to Joseph Capurso, head of foreign exchange at the Commonwealth Bank of Australia, 'I think the US dollar is just going to keep growing a little bit higher.'

The euro has traded near its weakest in three months at $1.1360 after the European Central Bank's chief signalled measured steps to quell inflation.

Australia's central bank raised its cash rate to a 15-year high of 4.60% on Tuesday, saying inflation was too high and it was prepared to hike further if needed.