Dollar hits multi-month highs against peers over yields, recovery expectations

The dollar traded near a 3 ½-month high against its peers on Tuesday as higher bond yields and hopes for faster U.S. economic recovery boosted the greenback.

The dollar index gained 0.1% to 92.469, its strongest since November, building on a 0.5% rise on Monday.

Against the yen, the dollar climbed to 109.235, its strongest in nine months, while the euro was flat at $1.18530, hovering near multi-month lows.

The safe-haven franc weakened to 0.9369 per dollar, its lowest since July. The British pound gained 0.1% to $1.3834 after hitting a three-week low of $1.3779 on Friday.

The dollar index has gained over 2% so far this year as positive macroeconomic data and a dovish monetary policy supported bond yields.