WASHINGTON (dpa-AFX) - The U.S. dollar climbed higher against its major counterparts on Tuesday as Treasury yields rose amid bets the Federal Reserve might resort to aggressive policy tightening to combat soaring inflation.
The yield on U.S. 10-year Treasury note rose to 2.871 percent, while the yield on the 30-year Treasury bond climbed to 3.083.
In a speech at the Institute for Monetary and Financial Stability in Frankfurt, Germany, Federal Reserve governor Christopher Waller said that he favored 50 basis point hike at every meeting until there is a substantial reduction in inflation.
In U.S. economic releases today, a report released by the Conference Board on Tuesday showed a modest decrease in U.S. consumer confidence in the month of May.
The Conference Board said its consumer confidence index dipped to 106.4 in May from an upwardly revised 108.6 in April. Economists had expected the consumer confidence index to drop to 104.0 from the 107.3 originally reported for the previous month.
According to a report released by MNI Indicators, Chicago-area business activity unexpectedly grew at a faster rate in the month of May, rising to 60.3 in the month, from 56.4 in April. The increase surprised economists, who had expected the business barometer to dip to 55.0.
The dollar index, which advanced to 102.17 in the early New York session, gave up gains and dropped to around 101.80 by late afternoon, still up from the previous close of 101.67.
Against the Euro, the dollar is trading at $1.0730, firming from $1.0781.
The dollar is stronger against Pound Sterling at $1.2600, gaining from $1.2653. The Japanese currency weakened to 128.74 yen against the dollar, down from previous close of 127.56.
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